HM Government

Executive Summary

The truly global economy of the 21st century brings new opportunities and new risks. The way the financial crisis has swept across every economy in just a few months has underlined how interconnected our world now is. But beyond today’s global slowdown lies a world of new opportunities for which we must prepare. If we put in place the right foundations now, the prize is not just a richer country but also a fairer society. The challenge we face is to help safeguard people and businesses against the impact of the crisis now, while preparing our country today for the tremendous opportunities of tomorrow.

No country can close its borders to the impact of the global shock we are experiencing. But governments do not have to stand back, do nothing and let the recession take its course. The Government can deliver real help now and ensure our country comes through the downturn faster and stronger.

The Government has therefore increased support for those who have lost their jobs with personalised help to find new employment and to meet mortgage payments. It has taken unprecedented measures to improve the credit flow for businesses. It has introduced a wide range of tax cuts and extra support for families, children and pensioners. It has brought forward £3 billion worth of capital projects to improve the country’s infrastructure, create jobs and stimulate the economy. It is putting extra money into people’s pockets and providing targeted help to families and businesses who have been hit hardest.

In the longer term, the world economy is expected to double in size within the next 20 years, creating up to 1 billion new skilled jobs and industries and spreading global prosperity. This growth will be driven by an enormous expansion of wealth and disposable incomes across the world. The World Bank is forecasting that by 2030 there will be more than a billion people in developing countries belonging to the global middle class. Technological development will drive new production patterns and industries in both services and goods, and the rapidly emerging economies of Asia and South America will provide new markets for trade and exports. The expectations of consumers will continue to rise, leading to new demands for improvements in the standard of service they receive.

Taken together, these changes will create immense opportunities for business growth and individual success. The Government is determined to work with UK businesses so that our country can benefit strongly from this changing economy, creating more and better jobs for all.

This is also an economy in which the knowledge and skills of people are now the most important resource as well as our best chance of social progress. The countries which succeed will be those which make the most of the talents and potential of all their citizens. So if we make the right decisions in the downturn and continue to invest in skills and people, we can provide better jobs, wages and prospects for our citizens in the years to come. This means stepping up our efforts to unlock the talents of every child and young person from their earliest years, and supporting adults right through their working lives, so that we can build a more prosperous economy and a stronger, fairer society.