Despite the Bank’s Governor, Andrew Bailey, calling it a ‘once in a generation’ review, the scale of the criticism and of the overhauls Bernanke proposes mean that it should not be seen as the last, or a one-off, but hopefully one in a series of reviews and reflections on the Bank’s performance. Criticism of the Bank has all too often been seen as an attack on its independence and integrity when it is not – and certainly should not be – but rather, in this case, is a challenge to its credibility and competence.

Over the past quarter of a century, China accounted for a third of global growth and exported low inflation. During this time there were countless predictions of imminent economic doom. Such pessimism may be viewed like a stopped clock: of no use in telling the time but on occasions it will be right. The fear for some is that now might be one of those times. Growth is sluggish, youth unemployment may be one in four and prices are falling, feeding fears of deflation. Although the central government’s finances are sound, a significant problem is debts in local government and the property sector.

Three issues come to the fore in the wake of today’s Budget. First is the fundamental challenge of Britain’s weak economic growth. Second is that while the 2p cut in National Insurance was welcome, it should not divert attention from the need for tax simplification and reform and that the UK’s tax take is high and still rising. Third is the challenge of low public investment, and the challenges facing non-ring-fenced departments in coming years.