Neil Duncan-Jordan

Growing Britain’s economy is vital if we are to raise living standards and improve our public services. However, we need to recognise that growth that fails to tackle social inequality will mean that all the economic gains remain at the top of our society. In fact, between 2010 and 2019, the UK’s GDP grew by 1.9% every year, but the wealth gap widened by nearly 50%. Very few of us felt better off during that time, despite the figures showing that the country’s wealth was growing. Poverty is not just unfair; it is economically reckless as well. Reducing income inequality to the level of more equal OECD nations would save the UK up to £128 billion annually in reduced costs in areas such as crime and imprisonment rates, tackling poor mental health and improving healthy life expectancy. But none of that will be possible if we continue to use the same austerity-driven measures of the past. Put simply, we cannot cut our way to growth; it takes investment. In my view—I have mentioned this in the Chamber before—our pension funds offer one way to achieve that. We should remember that these funds represent the deferred wages of millions of workers. Directing pension funds toward socially beneficial projects is one way that our Labour Government can rewire our economic model so that it delivers for ordinary people.