Decentralising Britain: The 'big push' towards inclusive prosperity

Article

The UK economy has had a split personality since the Great Recession, combining a record-strong labour market with historically low productivity growth. A solution to this ‘productivity puzzle’ has so far eluded policymakers, but it is indispensable for the country’s future prosperity. In this report, we advance a bold set of policies to end the stagnation, while simultaneously redesigning the UK’s economic model towards more inclusive and greener growth.

Decades of productivity divergence among British firms and an increasing concentration of highly productive businesses and industries in south east regions of England1 have transformed the UK into the most regionally unequal country in Europe. The same period witnessed a decline in innovation and infrastructure spending, a concentration of knowledge in fewer firms, weakening local government, uncontrolled growth and consolidation of the financial sector, and a detached shareholding class monopolising corporate governance.

Our proposed remedy is simple: to decentralise the UK economy.

Related items

  1. A person sits at a desk in front of a laptop. A semi-transparent screen shows a digital AI agent

    Strike while AI is hot: Rebuilding worker power for the age of AI

    How worker power should be reanimated in the face of AI-driven labour market shocks.
  2. The exterior of the Ministry of Defence building

    The Europe agenda: Defence and security

    In this period of geopolitical chaos, greater defence and security integration offer a fruitful way for the UK to deepen its relationship with Europe.
  3. Rear view of unrecognizable people walking together on the street

    A tough hand: Why rising youth inactivity demands urgent action

    On Thursday, new data will likely show the number of young people who will be out of education, employment or training (NEET) will surpass 1 million for the first time since 2013.