Produced by HM Treasury Edited by Ed Balls, Chief Economic Adviser to the Treasury, Gus O'Donnell, Permanent Secretary to the Treasury, and Joe Grice, Director, Public Services Directorate, HM Treasury

'Sequels often disappoint, but HM Treasury is no ordinary second-time author.' - Faisal Islam, The Observer 'Increased competition, better regulation and a myriad of measures to improve productivity are all part of the panoply of 'microeconomic measures' examined in the Treasury's new book, which will undoubtedly prove invaluable to students.' - William Keegan, The Observer

• Foreword by Gordon Brown Introduction Overview: Key Principles for Policy Making PART I: RAISING PRODUCTIVITY IN THE UK UK Productivity Gap and the Foundation for Government Policy Trend Growth Enterprise and Productivity Challenge: Government Policy to Date The Regional and Local Dimensions The Environment European Economic Reform PART 2: FULL EMPLOYMENT AND THE LABOUR MARKET Historical Performance of the UK Labour Market Welfare to Work Making Work Pay - Tax Credits and National Minimum Wage PART 3: TACKLING POVERTY AND PROMOTING OPPORTUNITY Supporting Families and Children Promoting Saving Throughout Life Security and Independence in Retirement Tackling Poverty: A New Global Deal PART 4: WORLD CLASS PUBLIC SERVICES Public Sector Productivity: An Analysis Public Service Reform Public Investment and Capital Appraisal Conclusion: Constrained Discretion - The New Model

Produced by HM Treasury Edited by Ed Balls, Chief Economic Adviser to the Treasury, Gus O'Donnell, Permanent Secretary to the Treasury, and Joe Grice, Director, Public Services Directorate, HM Treasury

'Sequels often disappoint, but HM Treasury is no ordinary second-time author.' - Faisal Islam, The Observer 'Increased competition, better regulation and a myriad of measures to improve productivity are all part of the panoply of 'microeconomic measures' examined in the Treasury's new book, which will undoubtedly prove invaluable to students.' - William Keegan, The Observer

• Foreword by Gordon Brown Introduction Overview: Key Principles for Policy Making PART I: RAISING PRODUCTIVITY IN THE UK UK Productivity Gap and the Foundation for Government Policy Trend Growth Enterprise and Productivity Challenge: Government Policy to Date The Regional and Local Dimensions The Environment European Economic Reform PART 2: FULL EMPLOYMENT AND THE LABOUR MARKET Historical Performance of the UK Labour Market Welfare to Work Making Work Pay - Tax Credits and National Minimum Wage PART 3: TACKLING POVERTY AND PROMOTING OPPORTUNITY Supporting Families and Children Promoting Saving Throughout Life Security and Independence in Retirement Tackling Poverty: A New Global Deal PART 4: WORLD CLASS PUBLIC SERVICES Public Sector Productivity: An Analysis Public Service Reform Public Investment and Capital Appraisal Conclusion: Constrained Discretion - The New Model

Produced by HM Treasury Edited by Ed Balls, Chief Economic Adviser to the Treasury, Gus O'Donnell, Permanent Secretary to the Treasury, and Joe Grice, Director, Public Services Directorate, HM Treasury

'Sequels often disappoint, but HM Treasury is no ordinary second-time author.' - Faisal Islam, The Observer 'Increased competition, better regulation and a myriad of measures to improve productivity are all part of the panoply of 'microeconomic measures' examined in the Treasury's new book, which will undoubtedly prove invaluable to students.' - William Keegan, The Observer

• Foreword by Gordon Brown Introduction Overview: Key Principles for Policy Making PART I: RAISING PRODUCTIVITY IN THE UK UK Productivity Gap and the Foundation for Government Policy Trend Growth Enterprise and Productivity Challenge: Government Policy to Date The Regional and Local Dimensions The Environment European Economic Reform PART 2: FULL EMPLOYMENT AND THE LABOUR MARKET Historical Performance of the UK Labour Market Welfare to Work Making Work Pay - Tax Credits and National Minimum Wage PART 3: TACKLING POVERTY AND PROMOTING OPPORTUNITY Supporting Families and Children Promoting Saving Throughout Life Security and Independence in Retirement Tackling Poverty: A New Global Deal PART 4: WORLD CLASS PUBLIC SERVICES Public Sector Productivity: An Analysis Public Service Reform Public Investment and Capital Appraisal Conclusion: Constrained Discretion - The New Model