UK: A Plan for Growth – proposals to improve the UK’s supply-side

The UK badly needs a strategy to improve potential economic growth and for the government to make it a central priority.

What you will learn:

• Specific policies we propose to reverse the deterioration in potential growth include increased public investment, lower childcare costs to lift workforce participation, increased emphasis on STEM subjects in education, reforms to land planning and housing taxes, and better relations and closer trade links with the EU.
• Closer trade with the EU also offers a key advantage in lifting potential output while improving the structural fiscal position and hence increasing the scope for other supply-side measures.
• We also advocate an institutional change, with the creation of an independent supply-side council within government to provide expertise, consistency, and published advice, and to establish a credible path to higher potential growth.
• After the late-2022 spike in gilt yields, it would be risky for the UK to fund supply-side reforms entirely through increased borrowing.