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1. Housing Shortage
Issue: The UK has approximately 20% fewer homes than France, despite similar population sizes.
Consequences:
- High Housing Costs: Average house prices are around nine times the average salary.
- Limited Availability: First-time buyers face challenges entering the market, leading to increased renting and delayed homeownership.
- Social Impacts: Housing shortages exacerbate issues such as homelessness, overcrowding, and increased pressure on social services.
Statistics:
- Average UK House Price: £270,000.
- Households on Social Housing Waiting Lists: Over 1.1 million.
Proposed Solution: Planning Reform
Objective: Revise planning regulations to facilitate the construction of new housing and infrastructure.
Implementation:
Streamline Planning Application Process:
- Establish a centralized online portal for planning applications to reduce paperwork and processing times.
- Implement a standardized application template to ensure all necessary information is provided upfront.
Simplify Zoning Regulations:
- Consolidate and clarify zoning laws to reduce ambiguity and conflicting regulations.
- Introduce flexible zoning categories to allow for mixed-use development and innovative housing solutions.
Increase Community Engagement:
- Establish community-led planning initiatives to ensure local needs and concerns are addressed.
- Provide education and resources for community members to participate in the planning process.
Desired Outcomes:
Increase in New Housing Supply:
- Metric: Number of new homes built per annum.
- Baseline: 200,000 new homes built in 2022.
- Target: 240,000 new homes built by 2024.
Reduction in Housing Costs:
- Metric: Average house price-to-income ratio.
- Baseline: 9.0 (2022).
- Target: 8.1 by 2025.
2. High Energy Costs
Issue: Energy prices in the UK have increased significantly relative to consumer costs, affecting both households and businesses.
Consequences:
- Increased Living Costs: Higher energy bills contribute to the cost-of-living crisis, disproportionately affecting low-income households.
- Reduced Competitiveness: High energy costs hinder the competitiveness of UK businesses, particularly in energy-intensive industries.
- Environmental Impacts: Reliance on expensive, non-renewable energy sources slows the transition to a low-carbon economy.
Statistics:
- Average UK Energy Bill: £1,300 per year.
- Increase in Energy Prices Since 2010: Over 50%.
Proposed Solution: Energy Policy Overhaul
Objective: Simplify approval mechanisms for nuclear reactors to promote cheaper and safer energy sources.
Implementation:
Streamline the Nuclear Reactor Licensing Process:
- Introduce a single, unified licensing process to reduce bureaucratic hurdles.
- Ensure clear, transparent guidelines for license applicants.
Establish a "Nuclear Reactor Approval Task Force":
- Assemble a team of experts to review and expedite nuclear reactor approval applications.
- Guarantee a maximum approval timeline of 12 months for task force-reviewed applications.
Provide Incentives for Nuclear Energy Investment:
- Offer tax credits or subsidies for nuclear energy investments.
- Provide preferential treatment for nuclear energy projects in the task force review process.
Desired Outcomes:
Increase in Renewable Energy Share:
- Metric: Renewable energy share of total energy production (%).
- Baseline: 30% (2022).
- Target: 36% by 2025.
Reduction in Energy Costs:
- Metric: Average household energy bill (£).
- Baseline: £1,300 (2022).
- Target: £1,144 by 2024.
3. Expensive Infrastructure Projects
Issue: Infrastructure developments in the UK are substantially more costly compared to countries like France.
Consequences:
- Reduced Investment: High costs deter investment in crucial infrastructure projects, hindering economic growth.
- Inefficient Allocation of Resources: Excessive spending on individual projects can divert funds from other essential infrastructure needs.
- Negative Impact on Trade and Commerce: Inadequate or delayed infrastructure development affects the UK's global competitiveness.
Statistics:
- Average Cost Overrun for UK Infrastructure Projects: 20-30%.
- Comparison of Infrastructure Spending as a Percentage of GDP: UK (1.6%), France (2.2%), Germany (2.1%).
Proposed Solution: Private Sector-Led Infrastructure Development
Objective: Encourage private investment in infrastructure by simplifying approval mechanisms.
Implementation:
- Establish a "One-Stop Shop" for Infrastructure Approvals:
- Create a single, dedicated agency for processing infrastructure project approvals.
- Ensure all relevant stakeholders are represented within the agency.
- Introduce a "Fast-Track" Approval Process for Private Sector Projects:
- Develop clear, transparent criteria for fast-track eligibility.
- Guarantee a maximum approval timeline of 6 months for eligible projects.
- Offer Incentives for Private Sector Investment:
- Provide tax breaks or subsidies for private sector infrastructure investments.
- Offer preferential treatment for private sector projects in the fast-track approval process.
Desired Outcomes:
- Increase in Private Sector Investment:
- Metric: Private sector investment in infrastructure projects (£ billion).
- Baseline: £10 billion (2022).
- Target: £13 billion by 2024.
- Reduction in Project Costs:
- Metric: Average project cost overrun (%).
- Baseline: 25% (2022).
- Target: 15% by 2024.
4. Productivity Stagnation
Issue: Since 2008, productivity growth per person in the UK has stalled, this mixed with a increasingly challenging skills shortage and changing industries has resulted in a need for a vast improvement in real education linked to productivity that allows for best parts of capitalism, a matching of supply to demand.
Consequences:
- Reduced Competitiveness: Low productivity hinders the UK's ability to compete globally.
- Impact on Living Standards: Stagnant real wages affect household incomes and overall well-being.
- Limited Economic Growth: Productivity stagnation constrains the UK's economic growth potential.
Statistics:
- UK Productivity Growth Rate (2008-2020): Approximately 0%.
- Comparison of Productivity Growth Rates: UK (0%), Germany (1.4%), USA (1.3%).
Proposed Solution: Education and Skills Development
Objective: Enhance vocational training and non-degree pathways to address skill shortages.
Implementation:
- Increase standards in quality of work in excess of any other country in each industry. This should be used as the bargaining chip for the tax cuts below.
- Ensure simple, efficient, best in class taxes and regulations for 18+ education "schools/university's"
- Add to "Apprenticeship" Program:
- Modernize apprenticeship programs, ensuring the ability to employ an apprentice is as easy as possible. This should link to the below "Skills Gap Analysis" Tool.
- Eliminate all employment taxes for companies that employ an apprentice. This MUST continue after they qualify to ensure against a company keeping the apprentice at that level. This has the added bonus of gradually removing employment tax.
- Create a "Skills Gap Analysis" Tool:
- Develop an online platform for identifying regional skill shortages. This can be pushed onto recruitment agencies to ensure a data platform is available publicly using their data.
- Ensure real-time data updates and actionable insights for stakeholders.
Desired Outcomes:
- Increase in Productivity Growth:
- Metric: Annual productivity growth rate (%).
- Baseline: 0% (2022).
- Target: 1.5% by 2025.
- Reduction in Skill Shortages:
- Metric: Number of hard-to-fill vacancies due to skill shortages.
- Baseline: 20,000 (2022).
- Target: 16,000 by 2024.
5. Regional Inequality
Issue: Cities like Manchester and Birmingham are not performing at levels comparable to their European counterparts, indicating significant regional disparities.
Consequences:
- Uneven Economic Growth: Regional inequalities hinder the UK's overall economic development.
- Social and Economic Deprivation: Disparities in regional performance exacerbate issues such as poverty and lack of opportunities.
- Limited National Competitiveness: Regional inequalities affect the UK's global competitiveness.
Statistics:
- GDP per Capita in Manchester: £23,600, compared to £43,600 in Munich.
- Unemployment Rates: North East (6.1%), North West (4.3%), London (3.8%).
Proposed Solution: Tax System Reform
Objective: Streamline the tax system to eliminate inefficiencies and create a more favourable environment for investment.
Implementation:
- Simplify Tax Codes and Regulations:
- Consolidate and clarify tax laws to reduce ambiguity and conflicting regulations.
- Introduce a single, unified tax authority for streamlined administration.
- Introduce "Regional Investment Zones" (RIZs):
- Designate areas with favorable tax treatment to attract investment.
- Ensure RIZs are strategically located to address regional disparities.
- Offer Targeted Tax Incentives:
- Provide tax breaks or subsidies for investments in disadvantaged regions.
- Ensure incentives are conditional on meeting specific job creation or economic growth targets.
Desired Outcomes:
- Increase in Regional Investment:
- Metric: Investment in disadvantaged regions (£ billion).
- Baseline: £5 billion (2022).
- Target: £6.25 billion by 2024.
- Reduction in Regional Unemployment Disparities:
- Metric: Unemployment rate disparity between regions (%).
- Baseline: 2.5% (2022).
- Target: 2.25% by 2024.
6. Procurement Inefficiencies and Limited SME Participation
Issue: Government procurement processes are often inefficient and do not adequately involve Small and Medium Enterprises (SMEs).
Consequences:
- High Procurement Costs: Inefficient processes lead to increased costs for government projects.
- Underutilization of SMEs: Limited SME participation results in missed opportunities for innovation and economic growth.
- Lack of Local Economic Support: Insufficient engagement with local SMEs hampers regional economic development.
Statistics:
- Government Procurement Spend with SMEs: 26.5% in 2021/22.
- Total Government Procurement Spend: £407 billion in 2023/24.
Proposed Solution: Procurement Optimization
Objective: Implement a multi-faceted approach to reduce procurement costs while increasing local SME contracts.
Implementation:
- Retirement Fund Investment Incentive:
- Provide access to retirement fund investments for local SMEs that successfully participate in the procurement process.
- Establish strict eligibility criteria to ensure only qualified SMEs receive investment opportunities.
- Performance-Based Procurement Incentives:
- Offer senior procurement personnel a small percentage of purchases made (e.g., 0.5%).
- Reward junior procurement personnel with a small percentage of savings achieved (e.g., 1%).
- Enhanced Quality Control:
- Require each deal to be signed off by a superior in the relevant industry to ensure high-quality procured products/services.
- Restrict senior procurement personnel to making purchases only, while junior personnel focus on identifying savings opportunities.
Desired Outcomes:
- Reduction in Procurement Costs:
- Metric: Procurement cost reduction percentage.
- Baseline: Current procurement costs (2022).
- Target: Achieve best-in-class procurement costs by 2024.
- Increase in Local SME Contracts:
- Metric: Percentage of procurement contracts awarded to local SMEs.
- Baseline: Current local SME contract percentage (2022).
Target: 40% of procurement contracts awarded to local SMEs by 2024.
