“Fixing the foundations” is right, but Government needs to invest in public services now to build a healthy economy

Responding to the Prime Minister’s speech today, Dr Sara Reis, Deputy Director and Head of Policy and Research, said,

“Today the Prime Minister warned about difficult policy decisions ahead of the return of parliament next week and the first Budget of the new government set for October.

“At WBG, we are encouraged by Starmer’s focus on “fixing the foundations” of our economy and linking those to our public services. As the Prime Minister rightly says, we cannot build a strong economy off dysfunctional public transport or long healthcare waiting lists. Those barriers that people face to their well-being have a negative effect on the economy and on wider society, as they stifle people’s ability to fully participate in the labour market and in their communities.

“We very much welcome the Prime Minister’s focus on fixing the foundations as the correct approach. But we cannot wait for economic growth before we do this. Good public services underpin a strong economy, and as part of any credible economic plan, our  public services need investing in now

“It is only right that “those with the broadest shoulders should bear the heaviest burden”. This is the fair thing to do in a just society where we all contribute according to our means. If done right, a focus on wealth taxation can bring in dozens of billions of pounds a year to fund a resilient safety net to those most in need and robust high-quality public services for all.

“People who have borne the brunt of  the last 14 years of austerity and economic dysfunction, including working-class women, lone mothers, Disabled people and people from minority-ethnic backgrounds, should be the focus of the new Government’s decisions.

“We want to see a substantial reduction in women’s and child poverty rates, starting with the removal  of the two-child (benefit) limit and an uplift to welfare benefits to restore their value to pre-austerity levels. A strong and resilient economy cannot be achieved while over 2 million people rely on foodbanks to feed themselves and their families.

“A shift in focus is needed in public service funding. To not only address economic inactivity but also improve people’s well-being, we want to see a funding settlement for state departments based on needs rather than a predetermined spending envelope. Our public services like health and care services need to be invested in to cope with demand, support gender equality and sustain a strong economy.

“We look forward to the Chancellor making the right choices at the Autumn Budget in October and to keeping her promise to make the economy work for women.”

WBG spokespeople available for comment, contact Viktoria Szczypior at press@wbg.org.uk / 07553663144