In economics, stagflation is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high. Stagflation, once thought impossible, poses a dilemma for economic policy, as measures to reduce inflation may exacerbate unemployment.
Nigel Lawson, Baron Lawson of Blaby, was a British politician and journalist. A member of the Conservative Party, he served as Member of Parliament for Blaby from 1974 to 1992, and served in Margaret Thatcher's Cabinet from 1981 to 1989. Prior to entering the Cabinet, he served as the Financial Secretary to the Treasury from May 1979 until his promotion to Secretary of State for Energy. He was appointed Chancellor of the Exchequer in June 1983 and served until his resignation in October 1989. In both Cabinet posts, Lawson was a key proponent of Thatcher's policies of privatisation of several key industries.
Within the budgetary process, deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit, the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual. A central point of controversy in economics, government deficit spending was first identified as a necessary economic tool by John Maynard Keynes in the wake of the Great Depression.
The Great Depression in the United Kingdom also known as the Great Slump, was a period of national economic downturn in the 1930s, which had its origins in the global Great Depression. It was Britain's largest and most profound economic depression of the 20th century. The Great Depression originated in the United States in late 1929 and quickly spread to the world. Britain did not experience the boom that had characterized the U.S., Germany, Canada and Australia in the 1920s, so its effect appeared less severe. Britain's world trade fell by half (1929–33), the output of heavy industry fell by a third, employment profits plunged in nearly all sectors. At the depth in summer 1932, registered unemployed numbered 3.5 million, and many more had only part-time employment. However at the same time, from 1929 to 1933 employment dipped only to 94.9% relative to 1929 employment metrics and recovery was seen as early at 1933. The positive trend continued across real national income and wages. New houses built increased by 33% from 1929 to 1933, while profits, prices, export volume and value, and imports volume and value dropped. Overall, while all these metrics were concerning to parliament and businessmen along with devastating industrial regions, the common person especially in areas around London did not experience major hardship and even prospered.
Anthony Perrinott Lysberg Barber, Baron Barber, was a British Conservative politician who served as Chancellor of the Exchequer from 1970 to 1974.
In economics, aggregate supply (AS) or domestic final supply (DFS) is the total supply of goods and services that firms in a national economy plan on selling during a specific time period. It is the total amount of goods and services that firms are willing and able to sell at a given price level in an economy. Together with aggregate demand it serves as one of two components for the AD–AS model.
Christopher Ian Brian Mynott Philp is a British politician who is the current Shadow Leader of the House of Commons since July 2024. He held the post of Minister of State for Crime, Policing and Fire from October 2022 to July 2024. He was previously appointed to Liz Truss's cabinet from September to October 2022 as Chief Secretary to the Treasury and then as Minister for the Cabinet Office and Paymaster General. A member of the Conservative Party, he is the Member of Parliament (MP) for Croydon South following his election in 2015.
The term 'Selsdon Man' was coined by Labour Party Prime Minister Harold Wilson to describe the free-market economic policy of his principal rival, Conservative leader Edward Heath. The term 'Selsdon Man' was intended as a derogatory reference to the historic 'Piltdown Man', the supposed remains of an early human.
The Lawson Boom was the macroeconomic conditions prevailing in the United Kingdom at the end of the 1980s, which became associated with the policies of Margaret Thatcher's Chancellor of the Exchequer, Nigel Lawson.
Akwasi Addo Alfred Kwarteng is a British politician who served as the Chancellor of the Exchequer from 6 September to 14 October 2022 under Liz Truss and the Secretary of State for Business, Energy and Industrial Strategy from 2021 to 2022 under Boris Johnson. A member of the Conservative Party, he was the Member of Parliament (MP) for Spelthorne from 2010 to 2024.
Britannia Unchained: Global Lessons for Growth and Prosperity is a political book written by several British Conservative Party MPs and released on 13 September 2012. Its authors present a treatise, arguing that Britain should adopt a different and radical approach to business and economics or risk "an inevitable slide into mediocrity".
The 1976 sterling crisis was a currency crisis in the United Kingdom. Inflation, a balance-of-payments deficit, a public-spending deficit, and the 1973 oil crisis were contributors.
The Truss ministry began on 6 September 2022 when Liz Truss was invited by Queen Elizabeth II—two days before the monarch's death—to succeed Boris Johnson as prime minister of the United Kingdom. Johnson resigned as leader of the Conservative Party the previous day after Truss was elected as his successor. The Truss ministry was formed from the 2019 Parliament of the United Kingdom, as a Conservative majority government.
Liz Truss's tenure as Prime Minister of the United Kingdom began on 6 September 2022 when she accepted an invitation of Elizabeth II to form a government, succeeding Boris Johnson, and ended 49 days later on 25 October upon her resignation. As prime minister, she served simultaneously as First Lord of the Treasury, Minister for the Civil Service, Minister for the Union and Leader of the Conservative Party.
On 23 September 2022, the Chancellor of the Exchequer, Kwasi Kwarteng, delivered a Ministerial Statement entitled "The Growth Plan" to the House of Commons. Widely referred to in the media as a mini-budget, it contained a set of economic policies and tax cuts such as bringing forward the planned cut in the basic rate of income tax from 20% to 19%; abolishing the highest (45%) rate of income tax in England, Wales and Northern Ireland; reversing a plan announced in March 2021 to increase corporation tax from 19% to 25% from April 2023; reversing the April 2022 increase in National Insurance; and cancelling the proposed Health and Social Care Levy. Following widespread negative response to the mini-budget, the planned abolition of the 45% tax rate was reversed 10 days later, while plans to cancel the increase in corporation tax were reversed 21 days later.
The October 2022 Conservative Party leadership election was triggered by Liz Truss's announcement that she would resign as Leader of the Conservative Party and Prime Minister of the United Kingdom, amid an economic and political crisis.
In September and October 2022, the Conservative Party government led by newly appointed prime minister Liz Truss faced a credibility crisis. It was caused by the September 2022 mini-budget and a disorganised vote in the House of Commons over a parliamentary vote to ban fracking, ultimately resulting in the loss of support of Conservative members of parliament (MPs).
The November 2022 United Kingdom autumn statement was delivered to the House of Commons on 17 November 2022 by Chancellor of the Exchequer Jeremy Hunt, after being delayed by three weeks from its original scheduled date of 31 October. The budget addressed the ongoing cost of living crisis, and saw the announcement of a five-year package of tax increases and spending cuts designed to steer the UK through recession. An economic forecast published on the same day by the Office for Budget Responsibility (OBR) stated the UK had entered a recession after experiencing two quarters of a shrinking economy, and predicted the UK's economy would shrink during 2023. A reduction in households' disposable income was also forecast.
The 2023 United Kingdom budget was delivered to the House of Commons on 15 March 2023 by Chancellor of the Exchequer Jeremy Hunt. It was the first of two full budget statements presented during the Sunak ministry. It was also the first full budget statement to be presented by Hunt since his appointment as chancellor, and the first since the October 2021 United Kingdom budget presented by then-Chancellor Rishi Sunak. The date of the budget was confirmed by Hunt on 19 December 2022. At the same time he confirmed the budget would be accompanied by a full budget report from the Office for Budget Responsibility. The statement was presented as a budget for growth, with the objective of bringing about the conditions for long-term sustainable economic growth within the UK.
Jeremy Hunt served as Chancellor of the Exchequer between 2022 and 2024, during the premierships of Liz Truss and Rishi Sunak.
