The best is past (TT Sept05 p16-17)

UK GDP growth is set to disappoint over the next few years as there are no plans by the government to increase spending as a share of GDP. The onus is on the corporate sector to boost the UK economy but it appears unwilling to spend its cash mountain and move back into so-called financial deficit. House prices are expected to tread water and cut in base rates will stave off a marked deterioration, not provide a kick-start to recovery in house prices. A strong housing market and a substantial easing of fiscal policy can largely explain the ‘dynamic’ UK economy of recent years.