The debate surrounding economic policy in the UK has recently been heavily focused on determining the appropriate response to the financial crisis and recession. There has been less discussion about the nature of the UK’s political economy.Leaving the UK’s model of political economy unchanged is, however, not an option in the modern global economy. The existing model has resulted in an unbalanced economy with relatively low productivity and a structural balance of payments deficit. Without reform, these problems will not go away and could worsen. A debate about what Britain’s new economic model should look like is long overdue.This booka collaboration between Policy Network and IPPRaims to fill this gap and poses a series of challenging questions concerning the future of the British economy:What are the key principles upon which a progressive political economy in the UK should be based?How can government institutions and the role of the state be reformed to ensure they keep pace with a fast-changing economy?What can be done to address the market distribution of incomes and assets in order to reduce inequality?How can the government better support innovation-led growth?How can businesses be encouraged to engage in and support a new model of capitalism that will require significant changes in the way they behave?The answers to these questions form a significant contribution to the debates about progressive capitalism and inclusive prosperity and set out a way forward for a new political economy in Britain.
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