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Press Release

Prioritising physical infrastructure alone misses critical barrier to thriving economy, says WBG

We have responded to the Chancellor's speech on economic growth

Responding to the Chancellor’s speech, Dr Mary-Ann Stephenson, director at the Women’s Budget Group, commented,

“The Chancellor’s focus on investment is welcome, and the rise in average GDP spending to 2.6% is a positive step. However, prioritising physical infrastructure alone misses a critical barrier to a thriving economy.

“Our economy is being held back because people can’t access social care, get the right medical treatment when they need it, or because they cannot afford or secure a nursery place for their child. These services – our social infrastructure – are on their knees. Waiting for the economy to grow before investing in these services overlooks a critical point: public services are the backbone of a strong economy, not a consequence of it. 

“What’s more, the care sector is an inherently green sector: our analysis has shown that investment in the care sector could create 2.7 times as many jobs as the same investment in construction and produce 30% less greenhouse gas emissions. 

“We need to invest and grow our social infrastructure, and decarbonise our physical infrastructure. Expanding Heathrow airport is a worrying move from the Government, and flies in the face of our climate commitments. New research from the New Economics Foundation reveals such expansions would erase the climate benefits of the Government’s Clean Power Plan by 2050, with limited financial returns. We have long argued against the expansion of air travel.

“We recognise that the Government is in a difficult financial position as borrowing costs have gone up, but we cannot compromise on our long-term plans to reduce carbon emissions and preserve our planet for short-term economic growth. 

“There are other options on the table for increasing revenue to the Treasury to pay for the services and social security desperately needed for our economy and the people who keep it running, to thrive. 

“We urge the Government to honour their commitment to net zero, and their promise to call on those with the broadest shoulders. Easing the regulations around the non-dom tax regime – as recently announced by the Chancellor in Davos – is a step backwards. Last week, Oxfam’s latest inequality report showed that the total wealth of UK billionaires increased by £35m per day in 2024. Patriotic Millionaires’ recent G20 survey found 72% of millionaires support higher taxes on the super-rich to reduce inequality and strengthen public services.

“Taxing the super rich would not only help fund the services and social security that women disproportionately rely on, it would also help close the gender wealth gap.” 

 

For further comment, please contact Viktoria Szczypior at press@wbg.org.uk