Incentivising an ethical economics: A radical plan to force a step change in the quality and quantity of the UK's economic growth

Article

Our analysis looks at previous periods of British economic history to identify the enabling conditions for our most successful episodes of economic growth, noting the crucial importance of large-scale improvements in welfare and human capital to their success, and the negative impacts when these policies were reversed.

In its own prescription for kick-starting growth, IPPR calls for a rebalancing of power to move the economy out of its current low wage/low productivity equilibrium. This, IPPR’s Commission on Economic Justice argues, requires a shift in power from: corporate management to employees/trade unions; short-term financial interests to long-term investors; dominant companies to entrepreneurs; Westminster to the nations and regions; and households with great wealth to those with little.

We agree wholeheartedly that such structural and institutional change, including a greater emphasis on localities, allied to significant revenue-raising tax and wealth redistribution, is essential to deliver a step change in the quantity and quality of economic growth. We argue that this must be achieved through reconceptualising the welfare system as a growth promoter. Our radical proposal provides a general, motivating mechanism to achieve this.

Related items

  1. Two young children run playing underneath a rainbow canopy in a park or garden

    It takes a village: Empowering families and communities to improve children's health

    How can we build the healthiest generation of children ever?

  2. Scotland: Taxed enough already? Maybe not

    It is possible to make the case for progressive increases in income tax while in government. You can win the argument, and the world won’t come to an end.  
  3. The Houses of Parliament and Big Ben, River Thames and Westminster Bridge

    Fairness first: How the budget can make life better and the economy stronger

    The chancellor faces a daunting task at the upcoming budget. A fiscal gap sets the stage, putting the chancellor in the unenviable position of having to raise taxes.