The Institute for Prosperity's latest report, introduced by the Rt. Hon. Sir Vince Cable, outlines the policies needed to increase the rate of economic growth and kickstart a manufacturing revival in the UK.
No policy designed to get the UK economy to grow much faster than its current underlying very low rate of 1% or so per annum will work successfully unless the UK can implement an investment and export-led strategy. This requires a competitive base for a considerably wider range of manufacturing activity than exists at the moment.
One of the conditions necessary to increase our rate of growth is a competitive exchange rate, which would enable manufacturing to thrive in our economy. However necessary it may be, however, a more competitive exchange rate on its own is not a sufficient condition for achieving a manufacturing revival and a transition to a considerably higher growth rate.
This new pamphlet details the other conditions and policies which are necessary to ensure the UK starts to pay its way in the world again, with more manufacturing jobs, exports and an end to stagnant average incomes and a lowering of living standards. These new policies include:
- Education and Training: Increasing the quality and availability of technical and scientific training in the UK
- Taxation and Investment Allowances: A favourable tax regime for the manufacturing industry
- Finance for Manufacturing Industry: Making finance readily available for large volumes of investment
- Priorities for Infrastructure: A national planning framework to ensure the supply for industrial premises can keep up with demand
- Research and Development: Increased expenditure on R&D over the next decade
