A strong economy is an essential foundation for the provision of high quality public services. While the Government is determined to ensure that every penny spent on public services is used as effectively as possible, the overall level of provision that will be possible in future is strongly dependent on the overall performance of the economy. The achievement of these goals requires a long-term focus. Major improvements are needed both in Britain's product markets and in its labour market. Britain's productivity is significantly behind its major competitors, and in nearly 20 per cent of households with people of working age, no one is currently in work.
Economic stability is also essential.
The box opposite sets out the Government's key economic priorities which were first set out in the July 1997 Budget. This report addresses some of the ways in which they can be taken forward. 1.06 Lasting results will only be achieved if government, business and individuals can work together with common economic purpose. The Government is putting forward its own analysis of the economic challenges facing Britain and possible solutions but it wants to hear other views as well. There is a wealth of experience in Britain and the Government wants to encourage as wide a discussion as possible.