HM Treasury News Release
136/97                                          6 November 1997
_________________________________________________________________

        GOVERNMENT DELIVERS ON KEY ECONOMIC COMMITMENTS
                                

The IMF Executive Board today endorsed the Government's economic
policies in a discussion on the UK's Article IV. 

Chancellor, Gordon Brown, said:

     "I am delighted with the Executive Board's endorsement of
     our policies.  They confirm that we are now on course to
     get the UK economy back on track and to achieve our
     objective of high and stable levels of growth and
     employment." 


The Board discussion focussed on the IMF's Staff and Selected
Issues Papers which commend the governments actions:


     "The new government has set itself a high standard, aiming
     to consolidate stability and foster long-term growth, while
     seeking fairness and developing human potential.  It has
     made a bold start toward achieving this standard, winning
     credibility by delivering on key commitments and setting
     vigorously to work on an ambitious agenda".

     "The new government has stressed its commitment to
     macroeconomic stability, sound public finances, and
     flexible markets, while emphasizing the need to raise the
     quality of public services (particularly in health  and
     education), promote fairness, and foster long-run economic
     growth through investment in physical and human capital".


Notes for Editors


1.   As part of its normal surveillance work, the IMF carries
     out an annual appraisal of its members economies.  This
     appraisal is known as an Article IV consultation. 
     Following this year's Article IV, in July, the UK released
     the IMF Delegation's Concluding Statement.  The Delegation
     then prepare a report which forms the basis of a discussion
     by the Executive Board.

2.   On 27 October, the IMF Executive Board discussed the Staff
     Report on the UK's 1997 Article IV Consultation.  The IMF
     have now issued a Press Information Notice which includes
     the main points made at the Board discussion and the
     Chairman's summing up of the Board discussion. 

3.   Supplementary to the Staff Report is the Fund's Selected
     Issues Paper which contains a detailed analysis of the
     economy and the Government's policies.  The Paper
     concentrates on the following areas:

          National Accounts Revisions and the Economic Cycle
          Fiscal Policy: Developments and Prospects
          Inflation Targeting in the UK: Experience and
          Prospects
          Labour Market Performance and Policies in
          International Perspective
          The Level of the Minimum Wage

4.   If you have access to the Internet, you can find this
     release at "http://www.hm-treasury.gov.uk".  Material on
     other Treasury matters can also be found at this address.