An industrial strategy should address the persistent overvaluation of sterling and the failure to develop an appropriate system of technical education
Executive summary
On the eve of the EU referendum vote, according to numerous measures the British economy was performing exceptionally well. Unemployment was low and employment participation rates were at all-time highs, with continued low inflation. GDP growth since the financial crisis was only marginally behind Canada and the US, but well ahead of Germany and France.
Continue reading “Report: Rebalancing the UK economy – A post-Brexit industrial strategy”
The chancellor’s decision to devolve the full revenues from business rates to local areas is a radical step forward for England’s regions. But for local leaders to increase investment in infrastructure, they need to be able to set rates locally and borrow against these revenues.
The chancellor’s decision to devolve the full revenues from business rates to local areas is a radical step forward for England’s regions. But for local leaders to increase investment in infrastructure, they need to be able to set rates locally and borrow against these revenues. Without this flexibility there will be only minimal increases in investment. Full fiscal devolution to local authority partnerships that reflect local economies, if done after resolving longstanding flaws with the tax itself, could enable areas to generate up to an extra one per cent of revenues above their current trend rates. This would enable councils in London to finance large-scale projects such as Crossrail 2 or those in Manchester to fund a major regional transport hub.
Continue reading “Osborne’s fiscal devolution must go much further to transform local growth”
