Oecd Economic Surveys: United Kingdom 2004-2005

Cover --
Table of contents --
Basic statistics of the United Kingdom (2004) --
Executive summary --
Impressive macroeconomic stability but structural performance can be further improved --
Assessment and recommendations --
Chapter 1. Key challenges: translating a resilient macroeconomic performance into faster growth in living standards --
Introduction --
Box 1.1. The fiscal and monetary policy framework --
Recent macroeconomic performance and outlook --
Some slowdown in growth is welcome to contain inflationary pressures --
Risks are mainly to the downside --
Fiscal policy --
Fiscal policy has been important in supporting demand --
8230
 but keeping to the fiscal rules may require adjustments to current plans --
The long-term fiscal challenges --
Impressive macroeconomic performance also reflects flexibility in labour and product markets --
Figure 1.7. Changes in unemployment and manufacturing employment --
Figure 1.8. Growth in knowledge intensive services --
Figure 1.9. Command GDP adjustment to annual average GDP growth rate --
The major challenge is to close the productivity gap --
Figure 1.10. The sources of income differences --
Table 1.3. Productivity growth --
8230
 by improving skills --
8230
 by raising innovation performance --
8230
 by improving infrastructure --
8230
 and by liberalising planning laws --
Reducing large numbers on disability-related benefits is the key to raise labour utilisation --
Figure 1.11. Unemployment and inactivity rates --
Notes --
Bibliography --
Annex 1.A1. Differences between the OECD and 2005 budget projections --
Table 1.A1.1. Difference between OECD and budget 2005 fiscal projections --
Chapter 2. Housing: raising responsiveness of supply --
Assessing the risk in the current cycle --
Figure 2.1. Monetary tightening usually precedes house price falls --
Figure 2.2. Household debt servicing burden --
Figure 2.3. The correlation between consumption and house prices --
Policy measures to increase supply --
Figure 2.4. Projected growth in households and current housing completions --
Box 2.1. Is there room for more housing? --
Policy measures acting on demand --
Box 2.2. Recommendations to improve the responsiveness of housing supply --
Notes --
Bibliography --
Chapter 3. Public services and infrastructure: tracking the improvements --
Figure 3.1. Public spending is still growing fast but should tail off after 2007 --
Spending on health and education can still be made more efficient --
Figure 3.2. Spending and outcomes in health and education --
Box 3.1. The Atkinson review of national account measures of government output and productivity --
The focus is now on administrative efficiency and contestability --
Graduate contributions for universities --
Transport infrastructure --
Under-investment has led to poor quality transport infrastructure --
Capital spending on transport is being increased --
Congestion charging will be part of the solution --
8230
 but local authorities tend to resist its introduction --
8230
 and further growth in public transport is needed --
Notes --
Bibliography --
Chapter 4. Pensions: options for reform --
The current system --
Table 4.1. Pension net replacement rates --
Figure 4.1. The growing importance of the pension credit --
Figure 4.2. The fiscal cost of subsidising private pensions --
Options for reform --
Box 4.1. Mortgage equity release --
Box 4.2. Pensions: policy recommendations --
Notes.