The government has raised tariffs to protect the steel industry. It also nationalised the UK’s remaining blast furnaces last year to keep them running. Both moves point to the same conclusion: the current economic model is not working. A series of interventions from Labour’s Sir Sadiq Khan and Angela Rayner as well as the Green party leader, Zack Polanski, this week suggests that an economic debate on the centre-left and left of politics is under way. The disagreement is no longer about whether there is a problem. It is where the problem lies.
Sir Sadiq, the London mayor, is right that Brexit has raised costs for businesses and households. Closer EU alignment would improve trade, investment and market access. That matters. But rejoining the EU won’t on its own rebuild the UK’s domestic capability. Ms Rayner points to a real institutional problem. If the Office for Budget Responsibility (OBR) understates the benefits of public investment, the state may be constraining itself unnecessarily. That matters too. However, changing the OBR model is not a strategy.
