Time the UK had a New Economic Strategy

As we approach the Labour Chancellor’s first UK budget, it is concerning that little recognition is being given to the persistent shortcomings of growth-focused policies that rely on ‘trickle-down’ economics. The worsening cost-of-living crisis, rising food insecurity, and unaffordability of essentials highlight the inadequacy of these approaches for the majority.

Meanwhile, sectors like supermarkets continue to report profits fuelling steady dividend increases, alongside other high-dividend sectors: Energy (driven by oil and gas revenues), Financials (banks profiting from interest and services), Utilities (with stable, regulated revenues), Consumer Staples (providers of essential goods), and Real Estate (including REITs structured to maximise dividends). These industries reward shareholders generously, yet this wealth increasingly pools among the top 5%, whose assets have grown exponentially.

Addressing wealth inequality

This rise in wealth concentration occurs as the UK government borrows record amounts with no solution to austerity measures that have delivered massive reductions in critical public services and infrastructure funding. This suggests that while maintaining the UK’s 6th place in global GDP rankings may be seen as an economic ‘success.’ It is a success built on extracting maximum economic value from the population.

This is simply not sustainable. A new direction is clearly needed: one that values equitable growth. Moving forward, a focus on inclusive investment—prioritising accessible housing, healthcare, education, and sustainable energy—would ensure that the benefits of economic progress are shared more broadly. This approach offers not only a fairer return on the contributions of the population but also strengthens the economy by fostering resilience and prioritising collective well-being.

Look to ourselves for the answer

While meaningful change may seem unlikely from the top, there is hope. Grassroots movements, community organisations, and SMEs are already at the forefront of social, economic, and environmental innovations. They are paving the way for a more equitable future. Across the country, voluntary communities, charities, social enterprises, and SMEs are working tirelessly to deliver positive change, addressing sustainability and social justice challenges.

To amplify their impact, All About The Place works with the community sector and non-profits to help them better influence the government by highlighting their work’s social return on investment (SROI). This evidence of SROI is not just a number; it’s a powerful tool.

Demonstrating how every pound invested in community initiatives generates multiple returns regarding social, economic, and environmental outcomes, we establish an alternative narrative to GDP-focused growth. With this SROI evidence, we will showcase the tangible benefits of investing in people and communities, creating a compelling case for policies that support a fairer, more inclusive economy.