HM Treasury 2
                                              25 November 1997
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         CHANCELLOR PROPOSES CODE FOR FISCAL STABILITY


A proposal to implement a Code for Fiscal Stability was
announced by Chancellor Gordon Brown today. 

The Chancellor said that the Code, proposed in his Pre-Budget
report, would complement the reforms to monetary policy that he
introduced during his first week in office.  He said:

     "Openness and transparency in economic policy-making are
     crucial if people and businesses are to have the confidence
     to plan and invest for the long-term.  By  being open,
     governments can rebuild trust that economic policy will
     operate in a way that delivers high and stable levels of
     growth and employment.  

     "My reforms to monetary policy have given Britain one of
     the most open and transparent frameworks for setting
     interest rates seen anywhere in the world.  The new Code
     will reinforce stability, openness and credibility in
     fiscal policy."

The Chancellor explained that the Code, which will be enshrined
in legislation, would serve a number of purposes.  It would make
clear the principles and rules which underpin the Government's
approach to fiscal policy.  In addition, it would also provide
for the publication of a wider range of information about the
public finances, and would commit the Government to following
best practice standards of accounting.  This will make it easier
for Treasury Select Committee, Parliament and the public to
scrutinise fiscal policy.  The Chancellor said:

     "The Code demonstrates further the Government's commitment
     to a commonsense approach to managing the public finances. 
     By publishing a Code, we will be bringing openness and
     credibility to fiscal policy in a way that no other British
     Government has ever done."

The Chancellor ended by inviting comments from the public.  He
said:

     "I welcome the views of the public on how we can best take
     this proposal forward.  Only by working together can we
     ensure that we put in place a fiscal framework that best
     promotes Britain's long-term economic interests."






     NOTES FOR EDITORS

     1.   A discussion paper setting out the proposal for a Code
          of Fiscal Stability in more detail can be found in the
          Pre-Budget report press pack. Members of the public
          can obtain copies from HM Treasury Public Enquiry Unit
          (see below).   



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