ABSTRACT
The relative decline of the British economy is an internationally appreciated fact. But
there is less of a consensus on the causes of the decline, and even less on remedies. It is
argued in this chapter that, whilst there are long-term causes involved in the downward
slide, the slowdown in the growth of demand in the British economy partly caused by
policy, is a major factor in the further deterioration of recent years. The chapter is divided
into three sections: first an account of recent events with an attempt to locate them in an international and comparative context, second an analysis of some rival explanations of
the recent downturn, and third a discussion of some of the consequences. The argument
will show that cutbacks in public spending adversely affected prosperity in Britain.
