Sharing the benefits

Think tank: Resolution Foundation

Author(s): Mike Brewer; Karl Handscomb; Cara Pacitti; Lalitha Try

July 4, 2023

This report from UK think tank Resolution Foundation looks at whether Britain can secure broadly shared prosperity.

The UK has been living through a period of relative decline that has proved toxic for those on low-to-middle incomes. Against that backdrop, this report examines whether there is still a plausible path to steadily rising shared prosperity and, if so, what does it look like. It does this as part of the Economy 2030 Inquiry, which is developing an economic strategy for the UK to underpin higher growth and lower inequality. The report argues that a return to productivity growth is the central precondition for a return to rising wages in the UK, the main motor of increasing living standards. But it also explains why growth is a necessary but far from sufficient condition for success. It goes on to show that growth combined with a significant, but achievable, policy agenda covering both predistribution (including ensuring the rewards from the labour market are widely shared) and redistribution (including benefits system reform) offers a plausible path to rising and shared prosperity.