Since he gave independence to the Bank of England and took the politics out of interest rate setting, giving them a low inflation target.

Inflation is the biggest scourge that could blight our future. Recessions are linked to the “bust” that comes after pre-election, politics driven cuts in interest rates.

I do agree with you about what has driven growth, though.

“What puzzles me is that Labour are not banging on about the dangers to inflation of lowering rates, or taxes for that matter.”

I would suggest that the reason is they are more concerned about economic slowdown than inflation.
Recession loses them an election. Inflation can be blamed ( reasonably) on prices changes external to UK…anyway since when did GB worry about the effect of inflation on people-look at what he’s done to Council Tax.

But it’s the BoE’s problem & they are certainly between a Rock & a Hard Place with it.

Generic studies in USA, Canada & Netherlands indicate that immigration has negligible effect on per capita GDP growth.
NIESR has measured the effect of immigration on UK GDP growth since 1997 at +3%. As net immigration to UK since 1997 has added 2.6% ( of the total 3.9% increase) to population, this again suggests negligible per capita effect.

It is clear that Labour is drastically rethinking it’s open-door immigration policy in the light of pressure on public services, housing,and, in some areas, crime & social cohesion.

Total GDP has grown 60% over the ten years since 1997 in current prices , or 25% in constant prices ( IMF)

The biggest contributor to UK GDP is the Service Sector; and of that the largest element is Financial Services-the latter being the sector currently anticipating significant job losses.

I agree with your comments about debt supported consumer spending.I also agree that we-like other western economies-have benefited enormously from Chinese low priced exports of consumer goods.

I would say that this latter feature, allied to low interest rates & a bouyant Financial Services sector have been the main drivers of our growth-plus one other significant feature you didn’t mention:the public expenditure boom.

This latter has put huge additional spending power into the public sector workforce, as well as generating jobs in sectors like construction.

All of these factors are disappearing now-public spending slowing, Financial Services sheding jobs, Consumer Credit availability reduced, Chinese export prices rising-plus the rise in basic food commodities, and the explosion in energy prices.

The reason why Brown deserves credit is that he removed from himself the power to lower interest rates and specified the inflation figure as the one indicator that the Bank of England should use when determining rates.

Inflation will be kept low at all costs. What puzzles me is that Labour are not banging on about the dangers to inflation of lowering rates, or taxes for that matter.

What Peter says about immigration is interesting – isn’t it the case that the migrant workforce has become itinerant and gone where the prospects are brightest (in the Polish case, that’s back home for many)?