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- Plan for growth
Getting Britain's Economy Growing
To avoid a deep and prolonged recession, we need to put all our focus on how the UK economy can and must grow. Our plan is based on long-term vision, but it has practical, actionable elements that government can take now to help businesses during (and beyond) the current economic crisis.
A clear plan for growth
In May 2021 the we set out £700bn of opportunities for UK companies to achieve by 2030. We identified six overriding areas of opportunity for UK plc – markets where not only was there growth potential but where the UK was superbly placed to win. Those opportunities haven't gone away.
They include:
· Decarbonisation – where the UK is a winner in the global race to Net Zero.
· Innovation – where the UK extends its strategic advantage in science and technology, and increases economy wide adoption.
· Trade – where the UK makes the most of Brexit to become a trading powerhouse.
· Regional – with every region and nation winning global share in its distinctive strengths.
· Labour – where workplace revolutions leverage new talent and build new skills.
· Health – with health and wellness driving economic improvement and new growth sectors.
Taken together, these prizes present a transformational opportunity for the UK economy. Seizing them would make us competitive, dynamic and future-focused.
More detail and a full analysis of these prizes can be found on our Seize The Moment pages.
A lot has happened in the 12 months since we launched Seize the Moment. Business and government are facing economic headwinds and they're posing considerable challenges. More must be done if we are to have economic growth, and avoid deep and sustained recession.
It's why we're setting out our vision once again, in our Plan for Growth. In it we reiterate the six long-term priorities mentioned above. And, in recognition of today's challenges, we offer a clear path to achieving those goals with actionable steps the government can get started on. These all fall under the four levers that government has at its disposal to drive investment and growth.
Take a look at the summary of our plan below, or download the full document.
Our plan for Britain's economic growth
Smart taxation to unlock investment
We need tax changes that drive investment, not tax changes that fuel inflation. It’s time to get serious about business investment.
How?
- It’s time for a rethink on corporation tax
- The success of the super-deduction needs to be locked in with a permanent investment allowance
- Business rates need transformation not tinkering to rejuvenate high streets, lower prices for customers, encourage manufacturing and unleash green investment
Future focused labour market
The UK has labour shortages and skills shortages, and it’s time to get serious about them both.
How?
- The Apprenticeship Levy needs reform so that it works for all firms and sectors. To allow business to deploy it in a more flexible, modular way to target the most pressing skills.
- The Shortage Occupation List needs urgent updating to allow sectors to fill labour shortages and fulfil demand.
- We need strategies to grow skills at home to serve the needs of our economy for the years ahead.
Catalytic public investment
To seize the opportunities in new and emerging markets, the UK needs to speed up the development of new markets and cutting-edge tech. This will be especially crucial in the UK’s path to net zero and to secure the UK’s energy security.
How?
Commit £1bn annual funding for energy-efficiency retrofits and create a new ECO+ scheme.
Release committed funding into Innovation Accelerators and the Advanced Research and Invention Agency.
Publish a roadmap for the Integrated Rail Plan to speed up the delivery of regional connectivity.
Market-making to outcompete the world
The UK needs to out-compete the rest of the world, when it comes to attracting and unlocking private capital, EU & US are significantly outspending us on public investment. The government must become the best market-maker by setting the market rules, pricing structures and funding models.
How?
Review the existing design and use of financing and funding models, such as the Regulated Asset Base (RAB) and Contracts for Difference (CfD) to deploy them for investment in vital infrastructure and high- priority programmes, such as net zero and levelling up.
Rebalance all economic regulation towards investment and innovation as primary objectives rather than secondary, putting them on a par with consumer and price protection.
Establish an Office for Future Regulation to rethink how the UK approaches regulation in the long term based on being the smartest, most future-focused regulator.
Download the full plan below