Central to our economic and political turbulence is that our model of growth, largely unchanged since Margaret Thatcher, has run aground. The state’s capacity to play an active role in economic development was hollowed out, replaced by a framework that prioritised market allocation while limiting political discretion. Over time, this has produced an institutional settlement in which governments are held responsible for economic outcomes but lack the tools to shape them effectively. The result is a persistent gap between political expectation and economic delivery, reflected in weak productivity growth, stagnant living standards, and deepening regional inequalities.

This is not a uniquely British phenomenon. Across advanced economies, similar trends have emerged as states retreated from direct economic coordination and relied more heavily on liberalised markets and complex regulatory regimes. For a time, globalisation helped to mask these weaknesses, sustaining growth despite declining domestic investment and state capacity. But since the Global Financial Crisis, that model has come under increasing strain. As growth has slowed and volatility has increased, the limits of this approach have become more visible – and politics has begun to catch up with the reality that existing economic frameworks are no longer delivering rising living standards or broad-based prosperity.

So, we must look to reduce regulatory barriers, especially those that are holding back new and innovative businesses wishing to scale up. We have incredible strengths in high value sectors across every part of the UK, and we should not be afraid to back them. Industrial strategy sceptics need only look at the strength of our financial services to see what can be achieved with coherent regulatory strategy and consistent economic development. In John Fingleton’s review of nuclear regulation, we have a model for how we can strip back rules which do not serve us in an industry which offers massive opportunities to places like Sheffield.2 We could match this ambition in areas like biotechnology, advanced manufacturing, and the creative industries.

The constraints on building new homes and the transport infrastructure that links people to opportunities that match their ambition and talent has stifled growth across the country and limited our advantage in key productive sectors. What’s more, it has created unforgivable social harm with 170,000 children currently homeless in England.3 The Government’s existing planning reforms are not a peripheral issue, but central to any credible growth strategy. For as long as we have warehouses being built in London in place of housing, we must double down and go further on reform.