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Who Makes UK Economic Policy?

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Introduction

Who Makes UK Economic Policy? Economic policy in the UK Is made by a number of bodies both at home and abroad. There are some actors who directly make economic policy- for example the chancellor, and there are thhose who just influence the making of economic policy- for example pressure groups. Some of these actors are domestic actors and some are pannational. The different bodies responsible for economic policy making have different degrees of accoutnability. Traditionally the principle actor in making economic policy would be the chancellor and the treasury however, the responsibilty have been shared over many bodies as power has been ceded to other groups. The Chanellor does remain the key figure in economic policy making. It has been suggested that Gordon Brown has been the most powerful chancellor yet. This is because Tony Blair has ceded a lot of power traditionally of the PM to the chancellor and created a dual monarchy. ...read more.

Middle

The Chancellors key advisors also play a larrge part in shaping economic policy- for example Ed Balls. Margaret Thatcher actually listend to her advisor Sir Alan Waters more than some in her treasury. The Prime Minister (whose official title is First Lord of the Treasury) should always want to play a key role in economic policy making. This is because the success of the Governemnt is very dependent on the state of the economy. The privitisation of the capital market shows thast Prime Ministers can be very influential. However, there has alwasy been tension between Brown and Blairs domestic policy and Blair actuially has little influence over economic policy making. This hasnt been the case with all PMs however. Margaret Thatcher played a big part in economic policy; by making key appointments to the treasury she turned around the Uks economy against the with of the Governement (for exaple Trade Union legislation and supply side reforms). ...read more.

Conclusion

They have a huge influence over microeconmic legislation, coorporation tax and fiscal policy. Pressure groups and the media also have influence over shaping economic policy. In particular the CBI, Tus and consumer groups. For example the recent suggestions of green taxes will have been influenced hugely by the environmental lobby. Trade Unions are now a lot less influential as they once were after the TU legislation and the Government now listening more to the CBI. The 1992 election was said by some to be won for the Tories by the Sun (The Sun printed that Labour would just increase taxes) and this shows how the media can be highly influential. These days, Parliament has very little influece over economic policy as is has become increasingly marginalised . However, Parliament has begun to become more effective (and not just in terms of economic policy.) Theyt have the vote over the budget although given that the governing body has a majority the liklihood of it being rejected is very slim. ...read more.

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