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Growth

For the past decade, the UK has had an average growth rate of barely 1% per year – a level of growth which simply isn’t high enough to support the needs of our people.

Economic growth is the key to achieving higher levels of prosperity. We believe that Britain’s policymakers should reject the status quo and raise their sights to a much higher level of growth for which we would all benefit – to that of 3% per year.

Securing long-term growth will create more sustainable job opportunities and increase revenue for the treasury.

From mitigating against climate change to increasing demand on social care services and the National Health Service, Britain is faced with many long-term funding challenges, and only by having a higher rate of growth can we possibly afford to meet those.

To reach close to 3% growth and to compete with the rest of the world, the UK needs a new, bold economic vision and approach that tackles fundamental flaws in the UK economy.

The John Mills Institute for Prosperity believes this must start by increasing levels of investment, which stands at 17% per year – much less than the world average at 26%. Staggeringly, only 2.7% of that investment is made in sectors where higher rates of return are achieved – machinery, technology and power.

The UK must also invest in its depleted manufacturing industry, which is in fast decline. Today, manufacturing makes up less than 10% of our GDP. To rebalance the UK economy, we need to increase manufacturing to 15% of GDP, which would complement our successful services sector.

Our mission

1

Prosperity

Many communities and regions across the UK are feeling left behind as a result of the deep imbalances in our economy. A more competitive and balanced economy that works for the whole nation will increase living standards, job opportunities and prosperity for all.
2

Growth

We must reject the new norm of 1% growth per year and raise our sights. With a new, fresh and bold economic vision, the UK can get the economy growing again at over 3% per year to meet future funding challenges and increase levels of prosperity.
3

Equality

Our unbalanced economy is responsible for excessive and unsustainable levels of inequality. Only with positive economic development will we create a more equal society and readdress deep-seated geographical, social and intergenerational inequalities.

Related articles

JMI Bulletin - What changed between 2019 and 2020? From The John Mills Institute for Prosperity

The latest Bulletin discusses the Office for National Statistics' new comprehensive figures for the UK economy covering 2019 and 2020.

The Institute for Prosperity welcomes the Government's super-deduction policy From The John Mills Institute for Prosperity

The Institute for Prosperity responds to the Government's plans for a new capital allowance ‘super-deduction’, which hopes to boost business investment and productivity.

John Penrose MP: A manufacturing boom? Just aim tax relief at investment, not borrowing From John Penrose MP

John Penrose MP, a member of the Institute for Prosperity Advisory Board, argues that our manufacturing industry has fallen behind other nations because we do not invest enough and therefore we cannot compete with our rivals.

“To increase prosperity, growth and equality by putting a more successful economic future at the heart of British political discourse.”