Britain has suffered a long period of economic stagnation over the last 14 years, with low growth in productivity, real wages and living standards. Not only is this record poor by historical standards, but the UK has also underperformed compared with its international peers. We invest too little and too inefficiently – especially in skills, infrastructure and innovation.
A key problem relates to the many policy mistakes, reversals and leadership churn – these have helped create huge investment-sapping uncertainty. Second, structural reforms are needed to boost national infrastructure and housing, especially around the planning system. Third, we need to improve our relationship with the European Union, our closest trading partners. Finally, the transition to net zero, and sustainable growth, needs a new urgency. Change is desperately needed.
