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.

Mobilising the social care workforce image

Mobilising the social care workforce

A continued drive towards more mobile public services is needed to help overcome social care challenges in the bleak winter months, says David McKinney.
SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Children in Care

Essex County Council
£30906 - £42254 per annum + + Free on site parking & Benefits Package
Social Worker - Children in CarePermanent Full Time£30,906 to £42,254 per annum plus free on site parkingLocation
Recuriter: Essex County Council

Experienced Social Worker

Northumberland County Council
£32,029 - £35,934
At Northumberland County Council we are proud of our employees, who are... Northumberland
Recuriter: Northumberland County Council

Social Worker

Northumberland County Council
£32,910
We are seeking suitably qualified experienced social workers with at least 2 years frontline Social Work experience who... Northumberland
Recuriter: Northumberland County Council

Surveyor

Northumberland County Council
£28,672 - £32,234 per annum
We are looking for an enthusiastic and commercially aware surveyor to join us to undertake a range of interesting and challenging work. Northumberland
Recuriter: Northumberland County Council

Senior Programme Officer (Transport)

Northumberland County Council
£32,910 - £36,922
As a Senior Programme Officer for strategic transport, you will play a pivotal role in shaping the strategic direction of transport policy for... Northumberland
Recuriter: Northumberland County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue