Economic Priorities of the Present

By Sneha Alex

The economic meltdown, which began in 2008 with the collapse of financial institutions, had brought attention to economic sustainability around the world. Consumers and society are deeply concerned about job security and financial risk to governmental programs. With the recent developments in the UK regarding the relationship with the EU, there Is no doubt that the impact of economic uncertainty has taken its toll. The economic growth of UK is slower than US and Germany at a rate of 1.6%. The need of the hour is to look at the ‘Economic Priorities of the Present’.

Promoting Economic Growth Through Innovation

Innovation is crucial for economic growth and improved public services. The government should collaborate with private firms and pursue national policies to promote or aid innovation. Start-ups are fueling the economy, creating jobs, taking risks and creating value. A well-developed education system and a business-friendly regulatory framework combined with advantage of London being the financial hub can provide excellent opportunities for innovation.

End of Austerity

The austerity measures in the UK were adopted following the great recession to reduce the government budget deficit. The reduced public spending and increased taxes have resulted in increased use of food banks, high rate of homelessness and loss of jobs. British austerity has been a slow bleed, though the cumulative toll has been substantial. The government should focus on realigning economic objectives and unleash opportunities for green investments.

Inclusive Growth

Inclusive growth aims at creating a more equitable society by creating opportunities for everyone. To drive up innovation we need to invest in people to improve educational outcomes and skill formation. A more dynamic, socially mobile labour market would also address the issue of concentrated development limited to a few cities in the UK. Additionally, investing in technology for a digital government can deliver public services more efficiently and effectively, and help improve people’s lives.

In essence, what UK needs is a new economic landscape. A sustainable economy with better employment prospects, better standard of living and innovation driving better infrastructure and facilities.