- Supply Side Policies
- Encouraging Inward Investment.
The Govt has done this through offering tax incentives and very cheap loans. However under EU law this is supposed to be illegal because it is encouraging unfair competition.
This provides a temporary boost, but is unlikely to be a long term solution as repeated devaluations can cause inflation. Note this would be impossible under the EURO.
- Membership Of the Euro.
It is argued a single currency would improve the competitiveness of the UK because it would reduce transaction costs on trade.