Monday, 27 March 2017

UK in 2030

In December 2016, the Institute for Public Policy Research (IPPR), a centre-left think tank, published a report giving its predictions on how the UK would change in the coming years. The analysis draws on data from the OECD, the ONS and numerous economists and researchers. IPPR took a neutral position during the run-up to the EU referendum; this highlights how Brexit would exacerbate challenges around inequality and low productivity that the UK is already facing.

## Two-thirds of current jobs - 15 million - were at risk from new technologies such as artificial intelligence systems. This would make jobs less secure and more freelance.

## Income inequality will become more entrenched, as will the wealth gap between London and the rest of the country. By 2030 households will on average be £1,700 worse off per year than they would have been if Britain had stayed in the EU, with a persistently falling currency driving up prices and hitting the living standards of poorer people the hardest.

## There will be a population boom, with a 30% increase in the number of over-65s in the population by 2030, and a doubling of the number of over-85s. This would cause the state funding gap for adult social care to hit £13bn by 2030-31. The non-white proportion of the population is predicted to climb to more than one in five within 12 years.

## The UK is likely to remain trapped in a low growth, low interest rate decade driven by demographic shifts, productivity trends, weak investment, weak labour power, high levels of debt, and a slowing global economy. "Without reform, our political and social system will struggle to build a more democratic, healthy society in the decades ahead, even as Brexit accelerates us towards a radically different institutional landscape."

Read the IPPR report: http://www.ippr.org/publications/future-proof-britain-in-the-2020s

BBC News website 29 dec. 2016: http://www.bbc.co.uk/news/uk-politics-38459135
The Guardian 29 Dec. 2016: https://www.theguardian.com/business/2016/dec/29/uk-in-2030-older-more-unequal-and-blighted-by-brexit-report-predicts