A new study has highlighted an “urgent need” for substantial reform in the UK to address a range of interlocking crises, including economic decline, regional disparities, and declining state capacity. Researchers from the University of California Los Angeles (UCLA) and the Hertie School in Berlin, Germany, have used the Berggruen Governance Index (BGI) to assess the UK’s performance in democratic accountability, state capacity, and living standards.
The study underscores that austerity measures implemented after 2010 and the decision to leave the European Union have left “long-term scars” on the UK economy, contributing to what the report describes as an “economic drift” away from other wealthy nations. This has resulted in growing regional inequalities and stagnating productivity, signalling a pressing need for structural changes to prevent further declines in living standards.
The researchers found that while the UK ranks high globally in terms of overall performance, there are significant signs of stagnation and erosion, particularly concerning state capacity. The report argues that state capacity—a key factor in democracy’s ability to deliver public goods—requires urgent reform to avoid exacerbating existing problems and to safeguard future quality of life.
The report highlights several critical areas for reform. It notes that the UK’s civil service must improve its ability to attract and retain talented individuals, and it calls for a reassessment of regional planning policies. According to the study, the rise in regional inequality has been a long-standing issue that requires solutions with a similarly long-term perspective.
Investment in critical public institutions is also deemed necessary. The researchers specifically point to the National Health Service (NHS), the education system, housing, social services, and transport infrastructure as areas in urgent need of enhancement. However, the study also acknowledges the challenges posed by “considerable inertia of dysfunctional practices and policies,” which will complicate efforts to implement effective reforms.
The researchers suggest that any new government must take regional planning seriously and move beyond mere rhetoric to implement tangible economic policies. They recommend a thorough review of what has gone wrong with current regional policies and emphasise the importance of addressing these issues to avoid further exacerbation of regional inequalities.
The study’s authors stress that beyond enhancing state capacity, the UK must address the broader structural needs within its economy and public services. They argue that targeted investments and reforms are essential to counter the erosion of state capacity and to tackle the deep-rooted issues of regional inequality and stagnation.
In summary, the report makes a compelling case for urgent and comprehensive reforms to address the UK’s economic and social challenges. It calls on policymakers to act decisively to strengthen state capacity, invest in critical public services, and implement effective regional policies to ensure a more equitable and sustainable future for the country.
