Recommendation 10

Growth can mean very different things depending on the timeframe applied. Short-term growth could involve reducing costs of certain goods and services to stimulate household spend, but long-term growth could mean high prices to budget for investments that are believed to improve productivity in the future. The written evidence submitted by the City of London Corporation called for HM Treasury to issue clearer guidance on what is meant by “growth” in the context of regulators’ objectives.21 Without clear definitions, including the level of growth targeted and the timeframe over which it is expected, it will not be possible to determine whether the Action Plan has been successful.