At present UK economic policy is being shaped by tremendous global financial crunch that has affected almost all major world economies. As part of UK economic policies quarterly forecasts of economic growth have been toned down to a significant degree.
Recent economic policy of UK has necessitated reductions in volumes of production and manufacturing, which is a worrying trend as far as David Kerns who is chief economist of British Chambers of Commerce, is concerned.
In view of present economic crises it is necessary that a proper economic policy in UK is formulated by national government, Monetary Policy Committee and Bank of England so that there is some sort of economic recovery achieved by United Kingdom.
As per views of leading economists any economic policy at UK has to incorporate stringent and uncompromising corrective measures so that effects of present global financial downturn can be handled properly.
As part of its UK economic policy Bank of England has brought down its rates of interest to 1 percent. This benefit tries to bring down expenses of lending and make finances more readily available to business houses and common consumers.
Quantitative easing is new in line of UK economic policies. This is a move initiated by Bank of England and would try to increase amount of money present in banking system of United Kingdom.
National government has come up with a UK economic policy to revive its economic fortunes. Rate of value added taxes has been deducted to 15 percent from 17.5 percent. This would allow common consumers in United Kingdom to spend more money and thus help retail sector of UK economy do better than before. However, this is only a temporary decision.
An important area in UK economic policy is insurance of banks and other financial organizations against after effects of loans that have high risk potential. According to latest news financial authorities in UK are in talks with them regarding such issues.
According to their UK economic policy financial regulators are also looking at developing other areas of British economy such as easing significant amount of regulatory constraints imposed on business establishments.
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