UK Brown Labour GFC-Keynesian stewardship 2007-2010

Doctrine — stated goals and content

Labour-Keynesian GFC-response stewardship inherited as the long Blair-Brown expansion broke in 2007-08. Doctrinally a synthesis of New Labour fiscal-prudence commitments (golden rule, sustainable investment rule) with crisis-mode bank rescues and discretionary stimulus once the rules became unworkable. Signature actions: nationalisation of Northern Rock (Feb 2008), £50bn bank recapitalisation plan (Oct 2008) part-nationalising RBS (~58%, rising to 82%) and Lloyds-HBOS (~43%), temporary VAT cut from 17.5% to 15% (Dec 2008-Dec 2009), a £20bn fiscal stimulus package, and co-ordinated G20 London Summit (Apr 2009) committing members to $1.1tn of IMF/multilateral support. Left-right: centre-left economic, managerial rather than ideological. Popularity: Labour entered 2010 election on 29% vote share (vs 36% Conservative) losing 91 seats; Brown personal approval bottomed mid-2009 around 20%. Coherence: rhetorically tension between earlier prudence claims and the ~10% of GDP deficit bequeathed; substantive crisis response later judged broadly effective at averting systemic banking collapse.