Academy Of Ideas

Recorded at the Battle of ideas 2015. While the UK economy has recovered from the economic crisis, few would argue that the recovery is built on strong foundations. Wages are only just starting to rise in real terms after a number of years of decline. Economic output remains weak compared to previous recoveries, and the state is still spending almost £90 billion a year more than it receives in tax. A particular concern for economists is low productivity – the amount of wealth produced by each worker – which is well below that of other countries and 15 per cent below where it would have been if pre-crisis trends had continued. Yet across the main political parties there seems little vision of how the UK economy could look different in five, 10 or 20 years’ time. The chancellor of the exchequer, George Osborne, has made much play about the creation of a ‘northern powerhouse’. The H