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NEW: In his March budget @RishiSunak should “boost it like Biden”
UK spending plans announced so far are only about 2% of GDP.
The boost should be four times larger to help the economy bounce back - that would be similar in size to Joe Biden’s ambition. (1/5)
UK spending plans announced so far are only about 2% of GDP.
The boost should be four times larger to help the economy bounce back - that would be similar in size to Joe Biden’s ambition. (1/5)
Without a stimulus boost, the UK economy risks falling into a ‘stagnation trap’, with a slow recovery – about half the speed – and slower growth in the years to come.
Unemployment would be above 10% a year from now. Business investment would take 2yrs longer to recover. (2/5)
Unemployment would be above 10% a year from now. Business investment would take 2yrs longer to recover. (2/5)
The chancellor can prevent this and boost it like Biden. He should extend & adapt rescue measures, such as support for workers, businesses and public services.
The universal credit uplift should continue, next to a ‘family stimulus’ lifting >600k children out of poverty. (3/5)
The universal credit uplift should continue, next to a ‘family stimulus’ lifting >600k children out of poverty. (3/5)
Viable jobs can be saved by combining flexible furlough with a part-time work subsidy.
Future-proof jobs can be boosted by scaling up public investment. Lifting it to 5% of GDP would match the ambition of international peers and help the transition to net zero emissions. (4/5)
Future-proof jobs can be boosted by scaling up public investment. Lifting it to 5% of GDP would match the ambition of international peers and help the transition to net zero emissions. (4/5)
A bigger boost makes financial sense. 30-year real interest rates are negative – this means investors are literally paying the state to take their money.
As a result, if borrowed money is invested to boost the economy it can improve - not worsen - public finances. (5/5)
As a result, if borrowed money is invested to boost the economy it can improve - not worsen - public finances. (5/5)
See the full report here:
https://www.ippr.org/files/2021-02/ippr-boost-it-like-biden-paper-2-21.pdf
https://www.ippr.org/files/2021-02/ippr-boost-it-like-biden-paper-2-21.pdf
