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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

Interview: Caroline Flint on how manufacturing can help us escape the coronavirus recession From The John Mills Institute for Prosperity

Caroline Flint, Chair of the Institute for Prosperity, is interviewed on the Yorkshire Post podcast, Pod's Own Country, to discuss a new age for manufacturing in the UK.

Tax increases to pay for COVID-19 are not the answer — writes John Mills From John Mills

Our founder John Mills argues against tax increases and instead offers up an alternative route out of the coronavirus crisis.

Interview: Caroline Flint and John Mills on how to grow our way out of the economic hole caused by COVID-19 From The John Mills Institute for Prosperity

Our Chair, Caroline Flint, and founder, John Mills, talk to Reaction about how we can grow our way out of the economic hole created by the coronavirus pandemic.

Interview: John Penrose and Stephen Kinnock on Sky News From The John Mills Institute for Prosperity

John Penrose MP and Stephen Kinnock MP are interviewed by Ian King on Sky News to discuss a manufacturing revival in the UK.

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