Britain stands at a crossroads. The Centre for Policy Studies has released a new report called Breaking the Cycle, by Dr Gerard Lyons. It outlines the country’s economic challenges and proposes reforms. Whilst I disagree with some of it, the report deserves credit. In fact, if it was implemented it could guide recovery.
Breaking the Cycle
The report identifies low productivity, unsustainable debt, and a lack of meaningful reform. It emphasises fiscal credibility and sound public finances, presenting a plan worthy of recognition.
Lyons rightly focuses on productivity per capita. He highlights the burden of debt interest of over £100bn a year, highlighting a simple truth: we are living beyond our means, and we need to fix our public finances to restore confidence in the UK economy. He wants bold reform in investment, innovation and infrastructure, placing the financial sector at the heart of recovery and recognising its global importance.
But here’s the missing piece: regional governance.
Britain’s recovery depends on empowering regions
Many similar initiatives have failed. National productivity cannot rise without regional growth. Infrastructure cannot be fixed from Westminster alone, nor can a resilient economy be built while areas such as the North East, Midlands, and South West remain underfunded. It is true that the mayoral model is a step forward, but it is not enough to address the needed changes.
Lyons is holding back on meaningful devolution, regional assemblies, or regional parliaments. Yet, these are the very measures that have delivered growth and successful economies in many countries in Europe and beyond. He acknowledges that there are compelling reasons to decentralise power and improve accountability. He offers some framework and policies that could help regions. However, he falls short in recommending the establishment of a regional framework.
For someone specifically concerned about helping deprived regions, Lyons’ report is disappointing in its lack of targeted, practical proposals. Every region has a part to play. The future won’t be successfully built in Whitehall by piecemeal devolution. It will only be built in regional communities.
Britain needs true devolution
So, what do we need to do? We need to correct decades of underfunding in the deprived regions. We need to delegate powers to regional administrations, allowing local leaders who understand their areas to tailor funding to local strengths and needs.
If Breaking the Cycle is to succeed, then it must become a national framework with a defined regional focus. Otherwise, we risk repeating the same centralised mistakes and continuing to leave the deprived regions behind. London and the financial sector are highly successful, but it needs all the regions to be active. Every region deserves a stake in recovery. Every community deserves the means to thrive.
The report is welcome, though there is room for improvement. The UK must rebalance its focus away from London and the South East and towards northern England, the Midlands, and the South West. Recovery will not be achieved through central government action; it will depend on empowering regional economies and communities to drive growth.
