‘Britain needs a political economy built for rough seas’

At the time of writing, the US has begun its blockade of Iran’s ports. I have to put in the time stamp, because the whiplash an observer gets when following Trump’s statements of war, ceasefire and re‑engagement is enough to make any comment on the issue quickly out of date. We all pray a peaceful resolution to the conflict will be achieved, but it goes to show that there will be no return to long‑term global stability. That increasingly appears to have been a short‑lived anomaly. Trump’s declarations on Truth Social are the clearest example of our era where the only permanence is impermanence; where the geopolitical landscape can be rewritten in 280 characters. 

In this new world, Britain is in desperate need of a fundamental shift. We need a resilient, long-term political economy – one designed to withstand the whims of increasingly unpredictable world leaders. 

READ MORE: ‘How do we transform our nation? It’s written on our membership cards’

For decades, the UK operated on the assumption of a stable, rules‑based global order where supply chains were seamless and energy cheap. That world has vanished. From the structural upheavals of Brexit to the Covid‑19 pandemic, and the brutal reality of wars in Ukraine and the Middle East, every major global event of the last decade has underscored one truth: we are dangerously exposed. 

These repeated shocks do more than just damage the national balance sheet; they erode the very fabric of public confidence. They take away people’s agency, leaving behind the pervasive sense that any ability to shape your own financial situation has been lost. When distant geopolitical decisions drive up domestic energy bills and mortgage rates for ordinary families at home, the fundamental promise of the British economy begins to break. The idea that “hard work pays” rings hollow when a household’s disposable income can be wiped out overnight. 

This sense of powerlessness is the primary fuel for populists that promise control. The disillusionment they feed on is a direct result of the public feeling like Britain is a small ship buffeted by very high seas. Because for years, the UK has appeared to be chasing ambulances, running in a futile hope of catching up with global events rather than anticipating them. By tethering our national ambition too strictly to the short‑term, five‑year forecasts of bodies like the Office for Budget Responsibility, we risk prioritising the hunt for headroom over building the long-term foundations for shared prosperity. It is why the Good Growth Foundation helped convene the new Fix the Framework Coalition: to start a conversation on how we create the conditions for long-term, multi-decade investment Britain needs.

We need a long‑lived political economy that starts with people’s stake and in their agency. Economic insecurity is more than a macroeconomic problem; it is the feeling that life can be knocked off course overnight by decisions you never took and cannot influence. A serious growth strategy in this era has to be judged on whether it gives people more predictable foundations, more of a say in the forces shaping their lives, and a clearer sense that effort will be rewarded. 

Become a friend of LabourList and join our community. Our friends support our vital non-factional work and get access to exclusive content and events. 

How we get there is to have institutions built for instability, which don’t pretend it will go away; frameworks that allow governments to plan for the long term, but also ensure that the benefits of that planning show up in people’s pay packets, housing security and ability to plan ahead. It requires moving towards a more durable settlement between the state, business and workers, with a clearer shared understanding of what “security” should mean in an age of turbulence. 

This is not a search for quick fixes or temporary subsidies to bridge the gap until the next election. It is about identifying the guiding principles that will steer us through an era defined by crisis: that people should be able to build a decent life, plan beyond the next bill, and feel that their hard work pays even when the global weather is rough. The Good Growth Foundation’s upcoming National Growth Debate is designed to crowd in that conversation – bringing together voices from across politics, business and civil society to help shape a more stable, long-term settlement around growth and security. 

Progressive politics will only win the argument on growth if it can offer people genuine agency and meaningful economic choices. In a world defined by crisis, the task is not to promise calm seas, but to build an economy – and a political settlement – that helps people to steer the ship, not simply be carried along by the waves.

Subscribe here to our daily newsletter roundup of Labour news, analysis and comment– and follow us on TikTok, Bluesky, WhatsApp, X and Facebook. You can also write to our editor to share your thoughts on our stories and share your own. The best letters are published every Sunday.