Planning, Tax Reform and Structural Change

  • Alan Shipman


Godley’s forecasting skills rescue him from a threatened shake-out of Treasury economists when Labour appoints outside economic advisers on regaining office in 1964 and transfers longer-term responsibilities from the Treasury to the new Department of Economic Affairs. When its government launches a National Plan with bold targets for growth-rate improvement after 1964, Godley is drawn into new tax design and other initiatives designed to promote manufacturing industry, which Kaldor’s work has highlighted as essential for driving productivity growth and containing the trade deficit which has undermined previous accelerations. However, his refinement of Kaldor’s work strongly suggests that National Plan growth targets are unattainable, without improbable rates of investment and employment growth. Having decided against devaluation in 1964, new balance-of-payments problems make it inevitable by 1967, and Godley is commissioned to calculate how far the pound should fall.


  1. Barnett, J. (1982). Inside the Treasury. London: Andre Deutsch.Google Scholar
  2. Brown, G. (1971). In My Way: Memoirs. London: Gollancz.Google Scholar
  3. Cairncross, A. (Ed.) (1989). The Robert Hall Diaries 1947–1953. London: Unwin Hyman.Google Scholar
  4. Cairncross, A. (1997). The Wilson Years: A Treasury Diary 1964–1969. London: The Historians Press.Google Scholar
  5. Feinstein, C. H. (1963, December). Production and Productivity in the United Kingdon 1920–1962. London and Cambridge Economic Bulletin.Google Scholar
  6. Godley, W. (1967, August 18). Personal letter to Nicholas Kaldor.Google Scholar
  7. Hall, R. (1948). Diary entry for March 1948. In A. Cairncross (Ed.) (1989), p. 19.Google Scholar
  8. Hall, R. (1949). Diary entry for 15 September. In A. Cairncross (Ed.) (1989), p. 84.Google Scholar
  9. Hicks, J. R. (1942). Maintaining capital intact: A further suggestion. Economica, 9, 174–179.Google Scholar
  10. Kaldor, N. (1942). The income burden of capital taxes. Review of Economic Studies, 9(2), 138–157.Google Scholar
  11. Kaldor, N. (1943). The Beveridge Report II: The financial burden. Economic Journal, 53(209), 10–27.Google Scholar
  12. Kaldor, N. (1955). An Expenditure Tax. London: Allen and Unwin.Google Scholar
  13. Kaldor, N. (1966). Causes of the Slow Rate of Economic Growth in the United Kingdom. Cambridge: Cambridge University Press.Google Scholar
  14. MacDougall, D. (1987). Don and Mandarin: Memoirs of an Economist. London: John Murray.Google Scholar
  15. Matthews, R. C. O. (1968). Why has Britain had full employment since the War? Economic Journal, 78(311), 555–569.Google Scholar
  16. Salter, W. E. G. (1960). Productivity and Technical Change. Cambridge: Cambridge University Press.Google Scholar
  17. Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. London: Strahan and Cadell.Google Scholar
  18. Stewart, M. (1967). Keynes and After. London: Penguin.Google Scholar
  19. Thirlwall, A. (1987). Nicholas Kaldor. Brighton: Wheatsheaf Books.Google Scholar
  20. Wilson, H. (1964). The New Britain: Labour’s Plan. London: Penguin.Google Scholar
  21. Wilson, H. (1971). The Labour Government 1964–1970: A Personal Record. London: Weidenfeld and Nicolson/Michael Joseph.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Alan Shipman
    • 1
  1. 1.Department of EconomicsThe Open UniversityMilton KeynesUK

Personalised recommendations