The $30 million question: Can Britain be rich again?

Jeremy Hunt, a former Chancellor of the Exchequer, is asking a tantalising question in his new book: can Britain ever be rich again? Despite the UK's economic challenges, Hunt believes the answer is yes, as long as the country is prepared to make lasting change.

Throughout his time as Chancellor, Hunt was aware of the UK's economic woes, including the unravelling of Liz Truss's mini-Budget and the subsequent market chaos. He argues that the UK's economic challenges are solvable, but only with radical policies and a growth mindset.

Growth is the key to a brighter future

Hunt believes that growth is the key to a brighter future for Britain, but the country has been stuck in a productivity rut. since the pandemic, productivity has grown at a measly 0.1% a year,and many people have lost hope that things will improve.

However, Hunt is optimistic that the UK can break out of this cycle and achieve healthy levels of growth.. He argues that the country needs to make public services more efficient, help innovative companies to scale up quickly, and make it easier to build things.

The doom loop of high debt and low growth

Hunt warns that the UK is trapped in a dangerous doom loop of high debt and low growth. The bond markets have effectively taken additional borrowing off the table, making choices much starker.

Spending rises have to be funded by tax rises of equivalent size, and tax cuts have to be paid for with spending cuts. Hunt argues that the UK desperately needs the economic growth that lower tax and lower debt will bring, but instead has fallen into a cycle of ever-higher debt interest payments causing ever-lower growth.

A culture that rewards risk-taking and innovation

Hunt believes that the UK needs to change its attitudes towards risk and wealth creation. Economic growth is about mindset as much as individual policies, and the country needs to rediscover its British can-do entrepreneurialism in government as well as in the private sector.

Ministers and civil servants need to swap their traditionally cautious focus for a much more ambitious one, which means being honest about the many things over which they have no control, but also knowing where they do have influence, most importantly, through the tax system.

The path to renewed prosperity

Hunt argues that the path to renewed prosperity requires a fundamental shift in the UK's economic approach. The country must embrace a culture that rewards risk-taking and innovation,not just in the private sector but also within government.

The state has a role to play in creating the conditions for growth, but it cannot substitute for the dynamism of free enterprise. By reducing the burden of taxation and regulation, the UK can unlock the potential of British businesses and attract the brightest minds from around the world.

This is not about austerity or reckless spending, but about making smart choices that prioritise long-term investment over short-term fixes.