Former Prime Minister and former Chancellor Rishi Sunak has argued that the UK economy should adopt more of the United States’ approach to creative destruction, saying weaker businesses should be allowed to fail so more productive firms can grow.
Writing in The Sunday Times, Sunak said the US has outperformed other advanced economies through stronger productivity growth, technological adoption, abundant energy and a more dynamic business environment.
Key developments:
- Sunak said UK interventions during the COVID-19 pandemic may have prolonged the survival of less productive firms.
- He argued that “zombie” companies and lower labour mobility are weighing on UK productivity.
- He also criticised the Employment Rights Act, claiming it reduces labour market flexibility and could hinder economic growth.
Sunak said improving productivity and encouraging innovation will be essential if the UK is to strengthen its long-term econ
ℹ️ The Times
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