Jeremy Hunt, the Chancellor, believes that Britain could be the success story of the 21st century due to its "untapped potential". While acknowledging that the UK is currently facing economic challenges, Hunt insists that the country's situation is more akin to a sprain rather than a broken leg on the road to recovery.
Tax breaks and growth measures
Hunt has backed a series of growth measures aimed at transforming the economy. These measures include tax breaks designed to attract £20 billion of annual investment. One such measure, known as "full expensing", allows companies to claim 100% of the cost of an investment. Hunt believes that these measures will help close the gap with competitors such as Germany, France, and the US, where firms invest more.
Back-to-work scheme
Hunt has also announced a back-to-work scheme that aims to assist 1.1 million people with health conditions, disabilities, or a history of long-term unemployment. The scheme is part of the government's efforts to improve productivity and raise living standards.
Productivity key to success
In his speech at a Resolution Foundation conference, Hunt emphasized the importance of improving productivity. He highlighted that despite Germany's higher productivity, the UK has grown faster since 2010 due to its strength in innovation. Hunt believes that if the UK can solve its productivity issues, there will be no stopping its economic success.
Wage stagnation
A report by a think tank revealed that wages in the UK have stagnated compared to other advanced economies. The report estimated that the average worker has lost around £10,700 a year in pay growth. However, Hunt remains optimistic about the future, stating that there is more that can be done to raise living standards by focusing on productivity.
Overall, Hunt's message is clear: Britain has the potential to become a prosperous economy in the 21st century, and with the right measures in place, the country can overcome its challenges and achieve success.
