Labour’s political offer has become closely linked to economic growth, but a Guardian editorial argues that improving people’s lives need not depend on restoring previous growth rates. The piece draws on economists Karel Williams and Sukhdev Johal, guests on the newspaper’s Radical Thinking podcast, to make the case for a different economic approach.
The editorial notes that Keir Starmer made growth a central theme before the 2024 general election, arguing that it was necessary to fund Labour’s ambitions. Andy Burnham has also adopted the slogan “Growth in every postcode”. His chancellor, John Healey, told the Labour conference in September: “Without growth, there is no social democracy.”
Williams and Johal question whether past levels of growth can be recovered in a changed geopolitical environment. They also argue that higher growth would not necessarily resolve affordability problems in places that are unlikely to become centres for advanced manufacturing or financial services. The editorial points to the contrast between Manchester’s city centre and towns such as Oldham and Wigan.
Instead, the economists call for more attention to what low-income places need to function well and provide residents with a decent life. The editorial says that redistributive fiscal measures could reduce bills for people on lower incomes, while investment in transport, utilities, care networks and other local infrastructure could strengthen communities and improve access to essential services.
Burnham’s decision as mayor to bring Greater Manchester’s buses under public control and cap fares is presented as an example of this approach. The editorial says, however, that Starmer has sent mixed messages about “Manchesterism”, and argues that devolution should distribute power locally rather than direct it towards outside investors in pursuit of growth.
It also highlights Middleton, near Manchester, where a mayoral development corporation approved by Burnham is being shaped by residents and local businesses. The project aims to reshape local economic networks and improve the provision of everyday essentials. With support from Westminster, the editorial argues, social democrats can start improving lives without waiting for economic growth.
Sources: The Guardian Politics.