
Budget briefing: The age of the super-state
Think tank: Centre for Policy Studies
Author(s): Centre for Policy Studies
November 3, 2024
This report from UK think tank the Centre for Policy Studies discusses the age of the super-state.
New analysis from the Centre for Policy Studies shows that, as a result of changes announced in this week’s Budget, state spending is set to increase to an astonishing £1.5 trillion by 2029/30.
The briefing paper argues that the measures announced by Rachel Reeves show Labour reverting to its traditional view that the state can and should dictate the direction of the economy, with the Office for Budget Responsibility (OBR) projecting meagre growth and stagnant productivity as a result. The result is that private business investment will be crowded out, in favour of the state attempting to pick winners.
Unless Labour’s planning reforms deliver an unexpected growth bonanza, Britain faces another decade of virtual stagnation in living standards, which will result in Brits in 2029 being around £10,000 poorer than they would have been if GDP per capita growth had rebounded to the pre-2008 trend.