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Growth is undoubtedly the best way to create an environment for lower taxes and higher spending.
However it is delusional to create a Silver bullet projects, which adds to the GDP with borrowed monies. It simply takes resources out of the private sector economy and pushes up inflation and ultimately fails to deliver.
History is littered with White Elephant projects that promised so much in the way of Growth.
It does not mean it is not possible for Government to help Grow the economy but it needs smarter long term decisions.
Key ingredient to create Growth is to ensure businesses have confidence in the future.
If lacking growth is not a priority for business.
The UK GDP growing but often that can be down to population changes, so the GDP per person is a better measure of the economy. So lets look at a 10 year comparison.
| Metric | 2015 (Actual) | 2025 (Estimate) | 2015 Adjusted to 2025 | Difference |
|---|---|---|---|---|
| GDP (£ Trillions) | £1.90 | £2.84 | £3.24 | -£0.40 |
| GDP per capita (£) | £29,236 | £41,492 | £49,703 | -£8,211 |
So, if the 2015 GDP had kept pace with inflation, it would be £400 Billion higher than the current 2025 figure, and GDP per capita would be £8,211 higher.
Finance is the number one excuse why growth did not happen, whether its start-up or scaling, both having separate risk profiles.
The Government has to find a way, to help business gain finance from the many places that offer funding in the UK, whilst not carrying a disproportion of the risks and gain reward when succeeds to offset those that fail. So attempting to operate at no net cost to the taxpayer, meaning the scheme is designed to be self-sustaining. This is similar in principal to the successful UK government's Export Development Guarantee (EDG) scheme, administered by UK Export Finance (UKEF), is designed to support exporters by providing partial guarantees to lenders.
