Brown, (James) Gordon

British Labour politician, prime minister and leader of the Labour Party from 2007. He was chancellor of the Exchequer 1997–2007. As chancellor he ceded to the Bank of England full control of interest rates, and promoted such key initiatives as the ‘welfare to work’ programme directed against unemployment and funded by a windfall tax imposed on privatized utilities, and the introduction of tax credits to increase the incentives for those on lower incomes to be employed. His tenure as chancellor was the longest since the early 19th century and had a number of achievements. The country enjoyed a period of continuous economic growth, with GDP growth averaging 2.7% per annum 1997–2007 and the level of unemployment falling from 7% to 5.5%. This was made possible by a favourable international economy, the labour supply being boosted by immigration and the government's ‘New Deal’ and welfare to work programmes, and careful control over public spending. Economic growth provided the basis for higher levels of investment in the National Health Service. Brown succeeded Tony Blair as Labour Party leader (and prime minister), without challenge from within the party, when Blair stepped down in June 2007. During his first three months, he was tested by a series of events, including floods, terrorist attacks, and an outbreak of foot and mouth disease, and proved to be a resolute leader. This converted into high public approval ratings and to speculation that he would call an early general election to win his own mandate, but in October 2007 he ruled out holding an early poll.

Brown entered Parliament in 1983, rising quickly to the opposition front bench. He took over from John Smith as shadow chancellor in 1992. After Smith's death in May 1994, he declined to challenge his close ally Tony Blair for the Labour Party leadership, retaining his post as shadow chancellor, and assuming the chancellorship after the 1997 general election.

During the Labour government's first term 1997–2001, he gained the reputation of being an ‘iron chancellor’, maintaining firm control over public expenditure despite demands from the left wing of the party for more funds for welfare reform and the National Health Service. After the 2001 general election, Brown released more funds for health and other government spending, but there were criticisms that expected benefits were not being achieved and the total tax burden was rising.