Economics and Finance

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Major policy responses brought in under the Labour Government
Fiscal Stimulus

1.    Decrease VAT from 17.5% to 15%

2.    Introduced car and boiler scrapage schemes

3.    Brought forward capital spending projects (Olympic Games related for example)

4.    Bank bailouts – brought some banks (Lloyds and RBS) into Government ownership

Interest rates decreased from 5.5% to 0.5%


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