Britain’s GDP grew by just 0.3 per cent between April and June, down from 0.7 per cent the previous quarter. We’re told this is “better than expected”. Really? Is that the best we can do — celebrate mediocrity?
These aren’t the numbers of a confident, world-leading nation. The economy is growing, but only just. Businesses are paralysed, families feel stuck and everyday life shows it: littered streets, polluted rivers, unaffordable bills, energy costs still rising. There are moments it is hard to believe Britain is still a prosperous country. That is the true cost of politicians’ inaction — a country that feels like it’s standing still.
There are moments it is hard to believe Britain is still a prosperous country
Before you rush to point fingers, this drastic under-performance isn’t unique to the current Labour government. Successive governments have lurched from crisis to crisis, stuck in reactive mode rather than a proactive and forward-thinking one. Twenty-first-century Britain has been governed by leaders constantly on the back foot. We can see the consequences of this in our creaking infrastructure, underfunded public services and a workforce nowhere near ready for the tectonic technological shifts that lurk on the horizon.
I built my businesses from scratch, and one thing I learnt early is that short-term thinking is a recipe for long-term failure. Like a successful business, Britain needs structural reforms to thrive in a constantly evolving world.
Just this week long-term borrowing costs reached their highest level since 1998, in part due to concerns over the country’s public finances. All the while, investors watch. They’ve seen political instability and policy churn over years. They’ve seen the cost of electricity soar; the UK try and fail to build a high-speed rail line.
They’ve also seen this Labour government’s pledge to “back the builders not the blockers” with its Planning and Infrastructure Bill. That was a hugely welcome step forward and would have helped Britain build the infrastructure we need. But this bill has been gutted by concessions from the very government that introduced it, belying a lack of strength or willingness to confront difficult challenges.
I write all this as someone who knows what investors want: stability, predictability and a government that keeps its word. Right now, Britain isn’t ticking any of those boxes. We need to turn that around. We need to become a business-friendly environment that supports inward investment rather than bewilders it.
If we won’t invest in ourselves, why should the rest of the world? How is the world judging Britain? Inward investment isn’t just about money. It’s a vote of confidence in Britain’s future. Every pound of foreign capital is a judgment on Britain’s credibility, a signal of whether the world believes we still have the strength, stability and imagination to lead and succeed. Right now, the hard truth is: we don’t. We look like what we are: struggling.
International investors choose Britain because we offer something unique: a world-class science and tech ecosystem, and a higher education sector that attracts talent from across the globe. That investment creates high-value jobs, builds much-needed infrastructure and strengthens the UK’s global standing.
Don’t believe anyone who says we can’t be that nation again
Don’t believe anyone who says we can’t be that nation again. We have the raw materials: world-class universities, cutting-edge research, a vibrant tech sector and a proud history of invention. But right now, inertia is squandering our potential. With breakthroughs in biotech, AI and clean technologies, there has never been a more exciting time to do business.
Yet it remains unclear if Britain can leverage these advancements for future prosperity while struggling to combat increasingly potent risks including climate change, mass migration, cost of living pressures, declining birth rates and rising inequality.
Many countries face similar issues while “false prophets” abound, offering simplistic solutions to deeply complex problems. The only way we can reap the long-term rewards of the 21st-century paradigm shift is to roll up our sleeves and invest in our future. We cannot afford to fall further behind. We need to slash red tape holding back growth, train a workforce in 21st-century skills and welcome the world’s brightest minds to build innovative businesses in Britain. It will mean overturning regulatory barriers that make it so hard to build nuclear power plants, affordable houses and transport infrastructure. It will mean recalibrating a workforce to deal with the technologies of tomorrow. And attracting the world’s best talent to come here, stay here and build the businesses to power Britain’s next chapter.
Only by tackling structural obstacles that hold us back, such as our arthritic planning system, will we unlock our potential. I think the UK can be a world leader, but it needs to be strategic.
That’s why I’ve sponsored the Caudwell Strong Britain programme at the Council on Geostrategy think tank. Their research has already explored challenges facing Britain’s science and technology sector and are exploring how the UK can become a more attractive destination for foreign direct investment.
But time is not on our side. If we want Britain to thrive, we must act now, stop managing decline and look to the future. This country still has what it takes to lead, but we have to stop drifting. We’ve got to make bold choices and get Britain moving again. It’s time to lead.
John Caudwell is an entrepreneur and founder of Phones4U
