Growth Review
Chancellor George Osborne and Business Secretary Vince Cable announced a fundamental review of what each part of Government is doing to remove barriers to investment in The path to strong, sustainable and balanced growth (PDF, 603 Kb) published in November 2010.
The Government’s economic policy objective is to achieve strong, sustainable and balanced growth that is more evenly shared across the country and between industries. The Budget and Spending Review both announced action to meet this objective.
The Growth Review is a joint Treasury and BIS-led process that aims to ensure all Government Departments are doing everything they can to help the country grow and recover from recession.
What is the Growth Review?
The Growth Review calls on business and industry to challenge Government Departments on the measures they are taking to allow the private sector to flourish. The Government wants to create the right conditions for businesses to succeed, removing barriers that are preventing them from performing to their full potential.
How has it worked?
The growth review has focused on how to help the private sector to recover and create jobs with the aim of improving the conditions for business growth. This initial phase of the Review has focused on two elements:
Structural reform priorities that can benefit the whole economy in planning, competition, trade and inward investment, regulation, access to finance and corporate governance, and low carbon.
Removing barriers in sectors where there are clear opportunities for growth and where Government can make a difference, starting with the following sectors: construction; retail; healthcare and life sciences; professional and business services; advanced manufacturing; digital and creative industries; space; and tourism.
What is economic growth and why is it important?
Economic growth refers to the rate at which a country’s economy is expanding or shrinking. The more money that the UK is generates through creating products and services to sell, the better the country’s finances will be. It means that more jobs are created and quality of life will increase.
How does this process fit in with the Budget and other work the Government has been doing?
The initial phase of the Growth Review process has worked with business on an intensive programme resulting in ‘The Plan for Growth’ launched by the Chancellor of the Exchequer and the Secretary of State for Business alongside Budget 2011.
The Plan for Growth is based on four overarching ambitions for the British economy:
- Create the most competitive tax system in the G20.
- Make the UK the best place in Europe to start, finance and grow a business.
- Encourage investment and exports as a route to a more balanced economy.
- Create a more educated workforce that is the most flexible in Europe.
The Government is reducing the amount of money that it borrowing – referred to as the deficit. The Government inherited a situation where the UK was borrowing one out of every four pounds it spent. The 2010 Spending Review took decisive action to reduce the overall level of public spending, and prioritises the NHS, schools, early years provision and the capital investments that support long-term economic growth, setting the country on a new path towards long-term prosperity and fairness. The next stage of the process focused every part of Government on how to help the private sector to recover and create jobs.
