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Liz Webster: The UK’s growth problem...

The UK’s growth problem isn’t primarily that wealth hasn’t trickled down enough. • Productivity has been stagnant for years bc 2008 financial crisis led to austerity compounding problems. • Trade frictions (especially with our largest market- Brexit) raised costs and reduced competitiveness • Business investment is weak bc ⬆️ • Energy, housing and planning constraints suppress activity Simply transferring money from bosses to workers via higher wages or taxes doesn’t automatically create sustainable growth. If firms face higher labour costs without higher output per worker, the result is often fewer jobs, higher prices, or businesses scaling back, not a consumption boom. Redistribution can support demand in a downturn, but it is not a substitute for fixing the structural issues that have made Britain poorer relative to its peers. Wealth has to be created first. We need to get free trade back with Europe.
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