Rebalancing the Economy (Or Buyer's Remorse)

Workaround: In current version of Panels 3.8, it seems this body field needs to be populated in order for title above to appear. This note is hidden by custom CSS style. Jack Latimer.

  • Working Paper

    The working paper argues that the new political commitment to ‘rebalancing’ does not go to the root of British manufacturing failure because it fails to engage with long-standing problems in the national business model. ‘Rebalancing’ is an empty rhetoric.

    Since 1979 UK manufacturing jobs have declined and publically funded jobs have plugged the gap, especially in the regions. In most sectors poorly conceived privatisation and shareholder value pressures have left workshop-like structures and broken supply chains. The small scale of most UK manufacturing enterprises increases their vulnerability. Opportunities for growth are limited, and survival often rests on distant decisions by large overseas firms.

    The depth of the problem has been masked by equity withdrawal from property which almost matched GDP growth in the Thatcher and Blair years when the national economy was driven by asset price appreciation rather than growth in production. 

    There are novel fiscal politics that might begin to help British manufacturing and revive the regions. The report proposes new remedies including Value Added relief on UK manufacturing investment, tax incentives for apprenticeships, and a Land Value Tax.

    2011
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