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Liz Truss’ New Growth Commission argued that the average American earns more than a third of the average Briton as a result of slowing growth in the UK.
In its report, the organization claims the income gap across the Atlantic is worth £10,000 a year in individual purchasing power and £24,000 a year per household.
The report also warns of a relative slowdown in growth in G20 countries, especially in Western Europe, and the UK is one of the few international economies to see a decline in GDP per capita after COVID-19. It states that
The report is the latest challenge to the economic policies of Rishi Sunak and Jeremy Hunt by a group convened by former Prime Minister Truss.
I reported on Tuesday that the commission is proposing an alternative method of forecasting the impact of tax and spending changes on UK finances.
Truss has established himself as a campaigner for tax cuts to boost growth since he was forced to resign in October following a disastrous mini-budget.
Douglas McWilliams, an economic consultant and co-chair of the Growth Commission, said slow growth had become the “new normal” in many countries, including the UK.
“But the impact of this stagnation could not have been more evident, especially in the UK’s cost-of-living crisis,” he continued.
“Low growth hits everyone’s pocket.
Co-co-chair Shankar Singam, an international trade and competition attorney and economist, said, “There is endless evidence of how consistent policy decisions around the world have triggered this crisis of low growth.” said.
“If we do not act, we will miss the opportunities presented by the great technological advances we have seen, especially in the last 20 years.”
He said the Growth Commission wanted to “make the problem clear to the public and policymakers” and promised “a fruitful, bipartisan investigation into the reasons behind this crisis.”
Economists appointed by the group said in a report that if the UK’s GDP per capita grew by 3% over the next 20 years, the economy would grow by 65% and spend per Briton £15,000. claimed to increase. average.
The UK’s GDP per capita has grown by only 10% since 2015, compared to 24% in Germany and 18% in France.
Spring Budget projections had expected UK GDP per capita to decline by 0.8% in 2023, increase by 1.3% in 2024 and increase by 2% in 2025.
The Growth Commission brings together 13 economics to develop alternatives to forecasting techniques used by the government’s official budget watchdog. The official launch is scheduled for Wednesday.
The group was founded by Ms Truss, who has been very critical of organizations such as the Office of Budget Responsibility (OBR) and the Institute of Finance (IFS).
They have previously warned they oppose tax cuts like those announced in the mini-budget, saying they could lead to more borrowing.
Speaking to the Growth Commission’s latest report, a Downing Street spokesperson said: “We have never listened to a single source on this matter, and we know that the Finance Minister has heard a variety of voices and indeed has advisors who provide advice to the Treasury. will” from the world of economics and business. “