An IMGW News Report
Lord Mandelson, former business secretary and key figure in New Labour’s transformation, has warned that the UK is trapped in a “doom loop” of under-investment. Speaking in Edinburgh, Mandelson is expected to argue that Britain must pivot towards becoming a high-investment economy to break free from its current cycle of low growth and declining productivity.
Mandelson’s remarks follow a damning report from the Institute for Public Policy Research (IPPR), which found that the UK has languished at the bottom of the G7 investment rankings for 24 of the last 30 years. The report also highlights that countries like Slovenia, Latvia, and Hungary attract higher levels of private sector investment as a percentage of GDP than the UK.
The timing of Mandelson’s speech coincides with the run-up to Chancellor Rachel Reeves’ first budget, scheduled for October 30. In his address, hosted by the Reform Scotland think tank, Mandelson will argue that the UK must focus on valuing investment, not just measuring its cost. He is expected to criticise the persistent underinvestment that has long plagued the UK economy, linking it to the country’s faltering productivity.
One of the more pointed aspects of his speech will be his critique of Brexit. Mandelson will contend that the UK is currently “driving with an economic handbrake on” due to the fallout from leaving the European Union. To mitigate the damage, he will call for a comprehensive overhaul of economic policy, spanning industrial strategy, infrastructure, planning, skills, science, innovation, regulation, and the attraction of skilled migrant workers.
Despite Brexit’s impact, Mandelson will argue that Britain need not be defined by it. If the right policies are enacted, he believes the UK could still emerge as “the most dynamic economy in Europe,” attracting robust private and venture capital investment.
The UK Government has yet to comment.
