We can kick start the economy with cash, Brown urges world leaders

by Dave Keating | November 11, 2008 at 05:42 am

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UK prime minister Gordon Brown is making the case that Britain will have to undertake a stimulus package similiar to that being proposed in other countries in order to revive the economy. But so far, the specifics of how this would be done haven't been desctribed. Brown could do this either through tax cuts, or through rebate checks such as in the US. Tax cuts are the more likely possibility because of the differences between the US and UK tax systems.

Gordon Brown called on the world’s leading nations last night to fight the recession together by following China, Germany and Britain in giving financial boosts to their economies.

He told the Lord Mayor’s banquet that this was “no time for conventional old thinking or tired old orthodoxies” as he rejected “the old approach of short-term spending cuts in a downturn” that would hurt families and business.

Mr Brown, who earlier hinted at tax cuts and a spending boost in the forthcoming Pre-Budget Report, said that there was a growing international consensus that maintaining public investment was the right approach, “while allowing a temporary and affordable increase in borrowing to support economic growth”.