William Eichler 03 July 2019

Think tank calls for creation of ‘investment state’

Think tank calls for creation of ‘investment state’ image

A think tank has called for an end to austerity and the creation of an ‘investment state’ to help boost economic growth.

A new report from IPPR has argued that the Government’s policy of cuts to public spending – set to become the longest pause on real terms spending growth on record – has ‘failed’.

They argue that it took demand out of the economy at the moment when firms and individuals were spending less in the wake of the 2008/9 economic crash.

The progressive think tank cites the New Economics Foundation which calculated that the UK’s economy is about £100bn smaller today than it would have been without the cuts.

IPPR, whose report There is an Alternative: ending austerity in the UK was published today, also found that the Government is likely to miss its objective of an overall budget surplus by the middle of next Parliament.

Austerity has also had a detrimental social impact, according to the report.

It cites research showing that many types of crimes have increased, life expectancy has stopped rising and inequalities in health are growing.

Over a million people a year are now using foodbanks, according to the Trussell Trust data IPPR draw on. Rough sleeping has also more than doubled and the number of people living in poverty has risen.

The think tank argues that in order to halt and reverse the impact of austerity, the Government needs to invest in care for the young and old, skills (to address low pay and productivity) and security (to address debt and economic insecurity).

This could be achieve by incrementally increasing the size of the state by 0.7% per year which would see spending rise from around 43% of GDP today to around 48% of GDP by 2030.

IPPR also argues for an increase in corporation, wealth and income tax on high earners which could raise £57bn per year. This windfall could then be reinvested into pubic services.

Highways jobs

Deputyship Caseworker

Essex County Council
£20200 - £22220 per annum + benefits
We are pleased to be able to offer an exciting opportunity in our deputyship team, a team that provides a service to protect and support the wellbeing England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Practitioner - Family Support & Protection

Essex County Council
£38000.0 - £46000.0 per annum
Senior Practitioner - North Essex Essex County Council (ECC) is one of the largest and most dynamic local authorities in the UK, serving a population England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Project Engineer (Permanent)

Havant Borough Council
£37,100
We’re looking for an experienced and enthusiastic engineer to join our well-regarded design and implementation team. Havant, Hampshire
Recuriter: Havant Borough Council

Project Engineer (Fixed Term)

Havant Borough Council
£37,100
We’re looking for an experienced and enthusiastic engineer to join our well-regarded design and implementation team. Havant, Hampshire
Recuriter: Havant Borough Council

Housing Strategy & Partnerships Manager

Redbridge London Borough Council
£48,492-£51,450
The Housing Needs Service is undergoing a radical transformation to achieve successful outcomes for our residents. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Local Government News

Latest issue - Local Goverrnemnt News

The June issue of Local Government News contains the full details of all the winning schemes in the 2019 Street Design Awards. From Children's Play to Pedestrian Environment, find out who has been recognised for their innovation and use of best practice.

This issue also explores how local government pension funds can hedge currency risk, how councils can best address the shortfall in school places, and an update on the number of authorities banning the use of Roundup over safety fears.

Register for your free magazine