Three steps to fix Britain

Britain’s economy is failing, but fixing it is not as complicated as many economists claim.

In this video, I set out three straightforward policies that could transform economic performance, reduce poverty, increase investment and create a stronger society.

The solutions do not come from neoliberal economics. They come from recognising how money, spending, taxation and investment actually work.

I explain why poverty is not just a moral failure but an economic failure, why greater equality can create a stronger economy, and why Britain’s savings system is currently failing to support productive investment.

I also argue that redirecting some ISA and pension savings into the UK economy could unlock more than £100 billion a year for investment, job creation and the climate transition.

The Financial Times recently asked how Britain can revive its economy. My argument is that the answers exist, but they lie outside the economic assumptions that have dominated British politics - and FT thinking - for the last forty-five years.

In particular, I argue that a successful economy must first ensure that everyone has enough income to live with dignity and security. People who are struggling to survive cannot fully participate in society or contribute to economic growth. An economy built on insecurity is an economy that will underperform.

I also explain why higher taxation on high incomes, and most especially that from wealth, has a role to play in rebalancing spending and fiscal power across society.

Finally, I suggest that Britain already possesses the savings required to transform its economy. The challenge is not finding the money; it is ensuring that money is used productively rather than being diverted into speculation and existing assets.

The result would be a stronger economy, better jobs, more investment, lower poverty and a more secure future.

Could these policies succeed where decades of orthodox economics have failed?