Jeremy Hunt, the Chancellor, believes that Britain has the potential to become the success story of the 21st century due to its untapped potential. Despite acknowledging that the UK is currently experiencing a "sprain rather than a broken leg" on its road to recovery, Hunt remains optimistic about the country's future.
Transformative Growth Measures
Hunt has backed his growth measures, which he claims will be "transformative" for the economy. However, he warns that in order for these measures to have the desired impact, productivity must improve. The Chancellor emphasizes the importance of not losing self-belief and continues to support tax breaks and other growth measures to attract £20 billion of annual investment.
Closing the Gap
One of the growth measures introduced is known as "full expensing," which allows companies to claim 100% of the cost of an investment. Hunt believes that these measures will help close "about half the gap" between Britain and its competitors such as Germany, France, and the US, where firms invest more.
In addition to the growth measures, the Chancellor has announced a back-to-work scheme aimed at helping 1.1 million people with health conditions, disabilities, or a history of long-term unemployment. Hunt believes that Britain's strength in innovation has contributed to its faster growth compared to Germany since 2010, despite Germany's higher productivity. He emphasizes that solving the productivity issue would be the key to unleashing Britain's full potential.
A report by a think tank has found that wages in Britain have flatlined when compared to other advanced economies. The average worker has lost approximately £10,700 a year in pay growth. Despite this, Hunt remains upbeat, stating that there is still more that can be done to raise living standards, and that the only way to achieve this is by improving productivity.
Overall, Jeremy Hunt's optimistic outlook on Britain's untapped potential and his support for growth measures demonstrate his belief that the country can become the success story of the 21st century.
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