The UK economy remains strong and stable and is enjoying its longest period of macro-economic stability on record. The disruption in global financial markets has meant economic prospects have become more uncertain, with the pre-Budget report forecast incorporating some feed-through from financial market disruption to tighter credit conditions. But the UK economy has proved resilient to a number of shocks over the past decade, demonstrating the success of the Government’s macro-economic framework and promotion of open and flexible labour, product and capital markets.