Gordon Brown: UK recession response would be 'very different' to 2008 financial crash

Gordon Brown has suggested the UK Government's response to another potential economic downturn would be "very different" from his actions during the 2008 financial crash.

Former prime minister Gordon Brown has spoken on a potential new recession at an Edinburgh festival appearance

Speaking at the Edinburgh International Book Festival today, the former prime minister pointed to tariffs being imposed on Chinese imports to the US as an example of ways the current Government may react to another recession.

Predicting a different response, Mr Brown said: "I think it's fair to add that if there was a future financial or economic downturn, you wouldn't just see monetary policy, you would see fiscal policy.

"We've now seen trade protectionism as a reaction to [countries'] own problems.

"You're seeing security issues becoming economic issues, like buying from Chinese companies.

"It's a whole range of different things that you will see that are very different from what happened in 2008."

"I see the crisis a little bit like when you have high tide - before the crisis - that covers all the rocks, all the issues, which were to some extent covered because the water was very high so you were not seeing them.

"Well when the water withdrew, which is what happened with the great recession, you saw many of these issues," the Serbian-born economist said, citing middle-class incomes "camouflaged by the ability to borrow very heavily".

The economic crash has "ushered us into an era of globalisation which is new compared to what it was between 1989 and 2006", he said.