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UK Economy

The challenges facing the UK economy are affecting people's livelihoods - how can policymakers respond?

The UK economy has seen inflation soar in 2022 - outstripping wage and benefit increases - and creating a cost of living crisis.

A rapid increase in energy costs is one driver of the crisis. There have also been supply shortages related to the Covid-19 pandemic and an increased demand for products as the pandemic subsided in the developed world, leading to price rises. These have combined with the impact of Brexit on the economy, reducing the UK's competitiveness. These immediate challenges come as the UK continues to grapple with long-run productivity problems and low real wages.

The CEP is a joint partner in the Economy 2030 Inquiry, which is exploring the economic challenges facing the UK. The Inquiry will set out a plan for strong, sustainable growth, with a focus on people, places and firms.

This work builds on CEP's findings from two Growth Commissions (2013 and 2017) which considered why there is a wide variation in productivity across firms within the same industry, why UK productivity lags behind comparator countries and why productivity growth has slowed. The 2017 Growth Commission also addressed new questions arising from Brexit.

UK Economy Publications

Rebecca Freeman, Kalina Manova, Thomas Prayer and Thomas Sampson

23 June 2022

Rui Costa, Nikhil Datta, Stephen Machin and Sandra McNally

13 March 2018

Philippe Aghion, Terra Allas, Timothy Besley, John Browne, Francesco Caselli, Richard Davies, Richard Lambert, Rachel Lomax, Stephen Machin, Gianmarco I. P. Ottaviano, Christopher A. Pissarides, Isabelle Roland, Xavier Rolet, Nicholas Stern and Anna Valero

2 February 2017

Adair Turner, Richard Layard, Peter Boone, Charles Goodhart, Andrew Haldane, Simon Johnson, John Kay, Andrew Large, Andrew Smithers, Sushil Wadhwani, Martin Wolf and Paul Woolley

1 September 2010

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