UK Labour's Growth Obsession: Why a Different Economics Is Possible 2026

UK Labour's growth obsession has become the defining economic strategy of the new government, but critics argue that a different economics is possible. As Prime Minister Keir Starmer and Mayor Andy Burnham double down on GDP targets, economists Karel Williams and Sukhdev Johal challenge the assumption that growth alone can deliver social democracy.

In the latest edition of the Guardian's Radical Thinking podcast, Williams and Johal argue that the link between growth and progressive politics is flawed. They suggest that in a transformed geopolitical environment, restoring former growth levels may be a chimera, and that better growth rates won't automatically translate into shared prosperity.

The Growth Fixation in UK Politics

Since the 2024 general election, Sir Keir Starmer has declared that "growth must become Labour's obsession." This mantra has been echoed by Andy Burnham, who ran on Greater Manchester's record as the UK's fastest-growing city region. Burnham's chancellor, John Healey, told the Labour party conference in September: "Without growth, there is no social democracy."

But this single-minded focus on GDP growth is politically unhelpful, according to Williams and Johal. They argue that the notion former levels of growth can be restored is likely to prove a chimera, especially in a changed global landscape. More importantly, the contrast between Manchester's booming city centre and hard-pressed towns like Oldham and Wigan illustrates that better growth rates alone won't solve regional inequality.

Why Growth Doesn't Guarantee Social Democracy

The assumption that growth is a prerequisite for social democracy is flawed, Williams and Johal suggest. They point out that growth can be uneven, benefiting already prosperous areas while leaving others behind. This is evident in Greater Manchester, where the city centre thrives but surrounding towns struggle.

Moreover, the pursuit of growth can lead to policies that prioritize quantity over quality, such as deregulation or cuts to public services. A different economics would focus on distribution, well-being, and sustainability rather than just GDP. As the economists argue, social democracy requires a more nuanced approach that addresses structural inequalities.

The Manchester vs. Oldham and Wigan Divide

The contrast between Manchester's success and the struggles of Oldham and Wigan is a powerful example of how growth can bypass certain communities. While Manchester's city centre has boomed, these towns have faced declining high streets, lower wages, and fewer opportunities. This disparity challenges the idea that growth in every postcode is achievable through current policies.

Williams and Johal suggest that a different economics would prioritize targeted investment in left-behind areas, rather than relying on trickle-down effects. This could involve devolving power and resources to local communities, supporting small businesses, and investing in public services. Such an approach would recognize that growth is not a panacea but one tool among many. The background to this story is set out in Andy Burnham UK PM: Centre-Left's Defining Test for Labour. A related thread runs through Andy Burnham as UK PM: The Defining Test for Centre-Left Politics. Earlier coverage in Can Labour Sustain the Burnham Bounce in UK Politics shows how the argument developed.

What a Different Economics Might Look Like

A different economics would shift the focus from GDP to well-being, sustainability, and equality. It would involve policies such as a shorter working week, universal basic income, and green investment. It would also require a rethinking of how we measure success, moving beyond GDP to indicators like health, education, and environmental quality. A closer look at the same subject appears in Keir Starmer's Leaving Party: Birth of a New Labour Force?. Anyone following the wider picture can start with Burnham Must Learn From Starmer's Economic Mistakes for Growth. The same theme surfaces in Andy Burnham Economic Plan: Good Growth in Every Postcode, which takes a different angle.

This approach is not anti-growth but pro-good growth. It recognizes that some forms of growth are harmful, such as those that increase carbon emissions or exacerbate inequality. By prioritizing the right kind of growth, a different economics can deliver social democracy without sacrificing the planet or social cohesion. Context on how this played out before sits in Andy Burnham Speech: How the Left Won the Economic Argument.

Key Takeaways

• UK Labour's focus on GDP growth as the primary goal is flawed and politically unhelpful.
• Growth does not automatically lead to social democracy or reduce regional inequality.
• The contrast between Manchester and towns like Oldham and Wigan shows growth can bypass left-behind communities.
• A different economics would prioritize well-being, sustainability, and distribution over GDP.
• Policies like targeted investment and devolution could address regional disparities.
• Measuring success beyond GDP is essential for a fairer economy.

Comparing Economic Approaches

FAQ

As the debate over UK Labour's growth obsession continues, it's clear that a different economics is not only possible but necessary. The experience of Greater Manchester and its surrounding towns shows that growth alone cannot deliver social democracy. By adopting a more holistic approach, the UK can build an economy that works for everyone.

For those interested in how consumer trends reflect economic shifts, Spain's burger obsession in 2026 offers a fascinating case study. The article Spain's Burger Obsession in 2026: Market Growth and Trends explores how niche markets can drive growth and cultural change, providing a contrast to the UK's broad economic challenges.