Gordon Brown’s first act after he became Chancellor of the Exchequer in 1997 was to grant the Bank of England operational independence.

The move was meant to signal a newfound pragmatism in Labour’s approach to the economy – no more reckless spending, no more excessive borrowing, no more outlandish leftwing demands for full employment. Instead, in stark contrast to the behaviour of previous Labour governments, the Blair-Brown administration would be a responsible steward of Britain’s national finances.

Read More