Autumn Statement 2011: A submission from The Work Foundation
Ian Brinkley, Charles Levy, Andrew Sissons, Jonathan Wright and Mark Lloyd
24 November 2011
The government is faced with an immediate economic challenge as the economy slides towards a second recession. But there are also three major structural problems to confront. Firstly, it is likely the economy has suffered a permanent loss of productive capacity, reducing the sustainable long-term growth rate. Secondly, parts of the North and the Midlands need much stronger private sector growth to offset the contraction in the public sector. Thirdly, future growth must come from investment and innovation in entrepreneurship in manufacturing and productive services rather than high risk financial products, property speculation and consumer debt.
This paper provides an assessment of the state of the UK economy as it struggles to emerge from recession, looking at the labour market and how the economic recovery is taking hold in different parts of the country. It sets out the foundations for a credible government growth plan. This plan can neither be based on de-regulation nor on a short-term stimulus. Instead, it must be centred around a long-term commitment to renewing the UK’s infrastructure, stimulating innovation and technological progress, unlocking the growth potential of Britain’s cities and creating a more business-friendly financial system.
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