Britain could be success story of 21st century because of its ‘untapped potential’, insists Jeremy Hunt
BRITAIN could be the success story of the 21st century because of its “untapped potential”, says Jeremy Hunt.
He insists that the UK is suffering from a “sprain rather than a broken leg” on its road to recovery.
The Chancellor today backed his growth measures to be “transformative” — but warned productivity must improve if rocket boosters are to be put under the economy.
He said: “If I was going to choose one country in the world that had the untapped potential to become the most prosperous 21st century economy, it would be Britain.
“It is important not to lose our self-belief.”
Tax breaks have been brought in as part of 110 growth measures to attract £20billion of annual investment.
One — known as “full expensing” — allows companies to claim 100 per cent of the cost of an investment.
Mr Hunt believes such measures will close “about half the gap” with competitors such as Germany, France and the US where firms invest more.
The Chancellor also announced a back-to-work scheme to help 1.1million people with health conditions, disabilities or a history of long-term unemployment.
He told a Resolution Foundation conference: “If you ask why it is that we’ve grown faster than Germany since 2010, despite their higher productivity, it is because we are actually stronger on innovation.
“If we could solve the productivity bit, there would be no stopping us.”
A report by the think tank found wages have flatlined compared to other advanced economies.
It estimated the average worker had lost around £10,700 a year in pay growth.
But Mr Hunt was upbeat. He added: “Are there more things we can do? Absolutely.
“But the only way you can raise living standards is by raising productivity.”