Britain’s economy isn’t seeing growth anywhere near India’s 7% GDP rise — this has caused fewer differences between the Conservatives and Labour: Jaideep Prabhu
Q. What economic concerns are central in Britain’s 2024 election?
A. Britain faces certain structural challenges now — growth is limping back to a very low level after a practically recessionary situation. It is unclear how GDP will increase. This problem is shared by other European economies and Japan as well. The United States escapes this by being a vast market with more robust demographics while Europe and Japan are ageing — one solution is immigration but it’s a highly problematic political issue in the UK. So, in Britain currently, there is no clear route to growth beyond 1% or 2% — we are not talking about anything close to the 6% or 7% seen in India.
Also, Britain suffered a self-inflicted wound in the form of Brexit — this reduced growth while creating huge frictions, bureaucracies and costs in trade with one of the UK’s largest trading partners, the European Union. On top of this came the Ukraine war which, hiking energy prices, caused inflation and a cost of living crisis.
Q. What do the Conservatives and Labour each propose?
A. Interestingly, as a comparison of their manifestos shows, there isn’t much to separate the two. For example, the Conservatives say they will keep public finances sustainable by reducing debt and borrowing. You’d expect Labour to be more expansionist in spending but they’re clearly out to prove they’re more eco-nomically responsible than the Tories — so, they say they’ll provide economic stability with clear rules on tax and spending and independent oversight. The Tories say
