Politicians from across the UK’s political spectrum seem to agree on one thing: growth. But for all the talk of resuscitating the UK’s flagging economy, there is little evidence (yet) to suggest that any party will succeed in charting a new course. Political leaders of all persuasions are – to echo the words of John Maynard Keynes – captive to defunct economic theory.
Rishi Sunak is advancing a piecemeal industrial strategy while painstakingly avoiding this label, focusing on wooing companies such as Jaguar Land Rover to base operations in the UK and on building the competitive strength of certain sectors. On the other side of the aisle, Keir Starmer is framing Labour as “economically responsible”, with a focus on growth rather than “big spending”, and is scaling back or delaying previous commitments, including a green prosperity fund. While Sunak’s plans show a lack of confidence in the state’s role in the economy, Starmer’s are falling victim to a false dichotomy between spending and growth.
