Why the UK should look beyond growth to a ‘new economics’ that works for all

The UK's current economic model, heavily reliant on Gross Domestic Product (GDP) growth, is failing to address pressing issues like cost of living struggles, the intensifying climate crisis, and persistent inequality. Conventional economic assumptions, such as individuals being purely self-interested and markets allocating resources efficiently, are increasingly out of step with reality. This orthodox thinking has contributed to a "polycrisis" characterized by interconnected challenges including climate change, biodiversity loss, energy and food insecurity, and extreme inequality, all exacerbated by geopolitical instability. A growing movement advocates for a "new economics" based on ten core principles: wellbeing for people and planet, recognizing complexity by integrating insights from various disciplines, acknowledging limits to growth on a finite planet, understanding nature's irreplaceability, designing for regeneration, adopting holistic views of people and values beyond self-interest, prioritizing equity and justice, fostering relationality and community, encouraging participation and cooperation, and being open to post-capitalist and decolonizing models. This new economic approach is not merely an academic concept. Examples of its application include Wales' Wellbeing of Future Generations Act, which embeds wellbeing goals into law for public bodies, shifting focus from short-term growth to long-term prosperity and resilience. Cities like Amsterdam are using "doughnut economics" frameworks to guide planning, balancing residents' needs with planetary boundaries through initiatives like sustainable construction and waste reduction. The UK's Chancellor, Rachel Reeves, has an opportunity to incorporate these principles into the upcoming budget and broader economic strategy. This would involve embedding wellbeing, justice, and sustainability into policy, guiding infrastructure spending by planetary limits, and supporting nature recovery, community food systems, and the circular economy. Integrating wellbeing and environmental indicators into budgets and involving citizens t... download the app to read more