It’s easy to blame the failure of Britain’s economic growth on the usual suspects – bad politicians, global crises, geopolitical shifts– but the world hasn’t stopped moving. It’s us. The machinery of British progress has ground to a halt.
For decades, both the political Right and Left have failed to meet the moment. The Right, claiming to champion growth, has pandered to entrenched interests and asset owners, allowing the rot to spread through the institutions that once made Britain a leader. Austerity, underfunded public services and a refusal to build the critical infrastructure of the future – whether in housing, energy or transport – have left us weak.
The Left, meanwhile, has become so focused on regulation and redistribution that it has forgotten what makes human progress possible in the first place: growth. The pursuit of prosperity has been replaced by a politics of scarcity, one that seeks to manage decline rather than ignite the ambition needed to create new opportunities for all.
The result is a Britain that no longer leads, but drifts. We’ve become ensnared in a cycle of slow decline, where we simply keep the status quo alive, propped up by broken systems. This failure is felt most acutely by ordinary families. Today, the typical British family is 19% poorer than they would have been had our growth trajectory continued as it did in the pre-financial crisis years. The effect is not just economic; it is human. It manifests in neglected housing, broken healthcare systems and a deepening sense of frustration among communities that feel left behind.
Without economic and material advancement, there is no human and social progress. Growth is the foundation of prosperity. It allows us to dream bigger, to create new opportunities, and to build the future in Britain. It is no coincidence that our most defining moments of social progress – such as the establishment of the NHS or universal education – were driven by the belief that economic growth could and should serve a greater purpose. Yet recent leaders have lacked the vision to imagine a future beyond the one they inherited. Are we willing to break free from this complacency, or will we continue to allow the institutions and policies of the past to hold us back?
We founded the Centre for British Progress because we think another path forward is possible. Three bold choices would allow Britain to rediscover its potential – we must choose dynamism over conservatism, building over borrowing and courage over impotence.
At the heart of Britain’s stagnation is an institutional conservatism. This conservatism is not about preserving the best of our traditions but a preference for the status quo. It’s a reluctance to take risks and a hesitation to embrace change. Whether in business, universities, or government, we have become a nation more comfortable with maintaining existing structures than with challenging them. This caution has hampered our economic dynamism. British companies are less likely to invest in innovation compared to their counterparts, and our graduates are significantly less likely to start businesses. Britain’s regulatory environment, while well-intentioned, often stifles innovation. The result is a sluggish economy where progress is slow and opportunity is scarce.
But this conservatism hasn’t always defined us. Our history is one of bold action – of individuals and institutions that took risks, invested in the future, and shaped the world. From Brunel’s engineering feats to the founding of the welfare state, Britain has had the capacity to act with courage and vision. We must rediscover this spirit.
The challenges we face today are not insurmountable. But to overcome them, Britain must once again learn how to build. Too often, we have relied on borrowing from the past, living off infrastructure built by previous generations. This is especially evident in our housing crisis, where instead of building more homes, we have allowed the market to become a speculative asset, benefiting a few at the expense of the many. The same is true for our energy infrastructure, where decades of underinvestment have left us vulnerable to energy price shocks. We need to build clean, abundant and cheap energy to power businesses and households alike.
Building the future requires more than just investment – it requires courage. For too long, we have been paralysed by a culture of inaction. Governments have been unwilling to tackle the structural problems facing the country, resulting in a series of half-measures that fail to address stagnation’s root causes. The public sector has become bogged down in bureaucracy, where decision-making is diffused across multiple layers, and responsibility is diluted. In a system where everyone has a stake, but no one has the authority to act, nothing gets done. We must restore agency to our leaders and give them the mandate to take bold, decisive action. This means creating institutions that are capable of delivering results, empowering individuals to make decisions, and holding them accountable when they fail. It means rediscovering the sense of purpose that once drove this nation.
Britain can once again be a place of invention and opportunity, where economic growth fuels social progress, and where everyone has the chance to build a better life. But this will not happen by accident – it will require effort, vision and the courage to act. We must build the Britain we want.
Click here to subscribe to our daily briefing – the best pieces from CapX and across the web.
CapX depends on the generosity of its readers. If you value what we do, please consider making a donation.
