Great British slowdown has hamstrung our economy – thinktank

Country needs successful firms to grow and struggling ones to shrink, says Resolution Foundation

The UK needs more businesses to fail, or at least shrink, to solve the economy's long-running productivity crisis, a study has argued.

The country's lack of economic dynamism", whereby weaker firms or lower productivity sectors shrink, and more productive ones grow, has caused GDP to be 4% lower between 2008 and 2019 than it would otherwise have been, according to a paper published on Monday by the Resolution Foundation.