Expert insights to bolster UK economic growth released ahead of the government’s Spending Review conclusion

The British Academy has today published expert policy insights for the UK’s economic strategy ahead of the anticipated conclusion of the government multi-year Spending Review this month.

The insights come from the Academy’s Economic Strategy Programme, which brought together British Academy Fellows, leading academics and economic policymakers to explore how to unlock long-term economic growth and prosperity. The project looked at four crucial policy areas: International Trade and Geopolitics; Research & Development (R&D) and Innovation; Skills; and Sustainability and Social Value.

Insights for the UK government include:

• Investing in the UK's capacity for investment will help the UK’s national resilience, as well as our ability to withstand and respond to the current heightened levels of global uncertainty.
• Developing a new ‘special relationship’ between the UK and Europe based on values, geography and security to mitigate the impact of global shocks, and to deliver mutually beneficial improvements in economic exchange. (International trade and geopolitics) 
• Exploring new collaborations with countries and regions that have an interest in remaining open and unaligned in an economic environment dominated by US-China competition. (International trade and geopolitics)
• Encouraging a focus on diffusion and adoption of technological and research insights alongside investment in fundamental R&D to spur innovation. (R&D, tech and innovation) 
• Promoting a more active approach to industrial policy through aligned investments in applied research, procurement, and local and regional policymaking capabilities. (R&D, technology and innovation)
• Ensuring policymakers consider the skills needs and match of both employers and individuals so policy is adaptable to change as well as flexible to local needs. (Skills)
• Identifying and addressing the future challenges to forms and patterns of work posed by the emergence of Generative AI and the need to transition to Net Zero. (Skills)
• Considering aspects of people’s lives beyond paid work that are fundamental to citizens’ well-being and a prosperous, well-functioning society (Sustainability and social value)
• Incorporating the social investment aspects of the economy into an analysis that is based on whole-systems approaches within government, rather than seeing these aspects as compartmentalised or disconnected. (Sustainability and social value)

The full insights and conclusions can be found in the Economic Strategy Synthesis Report.

British Academy Chief Executive Hetan Shah said: “After more than a decade of low productivity growth, and now in the context of a geopolitically uncertain world, the UK needs to rethink its economic strategy. The expert insights from this work shows the UK should invest in areas of comparative advantage and deep strength – from R&D and our skills base to our positioning as an ‘honest broker’ internationally. Although the UK has strong legal, financial, cultural and scientific institutions, the infrastructure to support some of the UK’s greatest strengths is not always well aligned with our needs and opportunities. The reports show how we can make the most of our capabilities to improve our economic prosperity and resilience in an uncertain world.”

ENDS

Read the reports:

1. The British Academy’s Economic Strategy Programme
2. The importance of social investment for UK economic strategy
3. Trade in an uncertain world: Deep advantages and nimble responses
4. A joined-up approach to UK skills policy
5. A new strategic narrative for British trade in turbulent times
6. Generating coherent and effective R&D and innovation policies