UK economy could resemble that of Italy by end of 2020s – report
Thinktank says new strategy needed in face of Covid, Brexit, net zero, automation and demographic change
Britain risks mirroring Italy's economic woes unless it develops a strategy for tackling the five seismic changes that will shape a decisive decade for the country, a report has warned.
A joint project by the Resolution Foundation thinktank and the London School of Economics said the UK was neither used to nor prepared for the challenges posed by the aftermath of Covid-19, Brexit, the net zero transition, automation and a changing population.
Covid-19: More home working as a result of the pandemic will mean more lifestyle choices for professionals, but will force lower earners to find new jobs in new places.
Brexit: The UK will be able to utilise new policy freedoms but will also have to cope with higher costs of doing business with the EU, its main trading partner.
Net zero: Decarbonisation will provide economic opportunities, but action is urgent. The UK needs to go from installing almost zero heat pumps each year, to installing 3,000 every single day by 2030.
Technology: The arrival of new technologies will boost but also disrupt living standards, with the Organisation for Economic Cooperation and Development estimating that one in seven jobs could disappear as a result of automation in the next 15-20 years.
Demography: The ratio of people under the age of 20 or over 65 to those aged 20-64 is likely to increase from 72 per 100 to 79 per 100 between 2020 and 2030 - a faster projected change than in any other decade in the first half of the 21st century.
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