There was an initial rise but that was not enough for the Bank it continued on

There was an initial rise but that was not enough for the Bank; it continued on right up to the end of this summer with its insistence on interest-rate rises.What has become clear is that the Bank was quite wrong, the expected surge in inflation did not happen. The first prong was Tuesday's cautious, though very welcome, move back into tax reduction, and the second is a reduction in interest rates - to work effectively, both prongs are necessary. Last year the Bank of England panicked about a surge in raw-material prices and put huge pressure on the Chancellor to raise interest rates in anticipation of inflationary pressure. This, however, cannot be the end of the story, for I expect over the next 12 months we will see continuing pressure from the Treasury for budget restraint, and then later next year further reductions to make room for further tax cuts Yet this Budget was twin-pronged. With 26 million people benefiting from this, then the economy will also benefit.

Furthermore, the lowering of taxes is very welcome and fully in line with Conservative instincts. A journey from recession to growth, with another budget yet to come This is clearly an 18-month strategy. The pounds 3.2bn reduction in government expenditure is welcome and although I hoped for more, it indicates our resolve to power the burgeoning cost of government. Everyone has to recognise how badly we need teachers and how much we undervalue them..

It was that great Greek poet Cavafy who wrote that life was not about the arrival but rather about the journey, and, in a sense, so was Tuesday's Budget. Teaching is far too important to allow those who fail at the job to carry on. Combining a serious increase in salaries and status for the majority of extremely capable teachers, while rooting out the few who drag them down, would do much to raise the value of the profession in the eyes of the outside world.Until a teacher's profession is a source of pride rather than embarrassment, the haemorrhage of talented staff will continue. When the school inspectors arrive to pronounce on a school's success or failure, they should give the teaching staff help and advice to make real improvements in the school, rather than just vanishing until the next inspection.Of course bad teachers must go. The best way to raise their morale and their enthusiasm for teaching is to accord them the status and respect they deserve.They need more support from the Government, too. For this they work nearly 50 hours a week, according to figures produced by the Teachers' Pay Review Body.But better pay alone is not enough Teachers need less haranguing and more encouragement. Only teachers will be able to make the difference in the classroom and to raise standards across the board.So what is to be done? One solution is to improve teachers' salaries and promotion prospects.