- The UK economy is facing several issues according to a report by the Resolution Foundation.
- Real earnings have stagnated since 2008, resulting in a significant gap and a decrease in overall wealth.
- Income inequality in the UK is higher than in many other European countries, with only the US being more unequal.
- Home ownership among younger generations, particularly millennials, is not increasing at the same rate as previous generations.
- There is a significant gap between major cities like London and smaller towns and regions in terms of income and wealth.
- The report suggests that wealth taxes should be increased as one of many potential solutions to address these issues.

The Labour leader Sir Keir Starmer has said the UK economy is in its worse state in decades and today one think tank released its evaluation saying the UK has seen 15 years of economic decline. 

Sky's economics and data editor Ed Conway has been looking at the numbers and what future governments could do to fix it.  

#economy #skynews #sirkeirstarmer 

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The Resolution Foundation released an enormous report on the state of the UK economy, what might be done to sort it out.

It's worth just having a look at some of the issues.

So, adjusted for inflation since 2000, they went up and up and up.

And if they carried on in that vein, Look, they might have gone up to there.

Instead, look at what happened post 2008.

That's basically the kind of flatlining, the stagnation they're talking about, to the extent that now there's this big gap.

So we're all worse off to the tune of about £201.

So this is something called the Gini coefficient.

And you can see the UK, the higher these bars are, the more unequal.

The UK is much more unequal than many other countries around Europe, particularly Northern Europe, particularly the Nordics, and only the US in this group is more unequal.

So it's those 2 issues together that they say is a problem, but also too is this.

This is showing you home ownership by generation.

You can see, look, people born in the 50s, the 40s, the 60s, as they get older, they get more home ownership.

So more people owning their homes as they get older.

But look what happens now when you're talking about kind of millennials and you're talking about those born in the 80s, those born in the 90s.

So they're not able to get on the housing ladder quite so quickly.

Potentially, you need more homes as a result of that.

This is looking at the gap between major cities and the smaller towns and regions in different parts of Europe.

So you've got France, you've got Germany, you've got Spain, you've got Italy as well.

So there you've got London, obviously, Manchester there in the middle, Powys and other parts of the UK at the bottom end.

But it's this gap that is quite concerning, a bigger gap between London and the rest.

And these lower income parts of the UK, far lower, look, you can see, than, for instance, in Italy or in Germany.

So that's a concern in terms of the way that that wealth, the way the income is distributed around the UK.

And so too, says the Resolution Foundation, is this.

This is showing you wealth going up over the years.

So the amount we tax wealth, and that's basically being flat.

And Their implication, at least, is that maybe you need to tax wealth a little bit more.

It's just 1 of many suggestions they have in this report.

Doubtless there's going to be more debate on this as the election approaches.


Speaker 0: The Resolution Foundation released an enormous report on the state of the UK economy, what might be done to sort it out. It's worth just having a look at some of the issues. This, perhaps, is the biggest 1 of all. This is showing you real earnings. So, adjusted for inflation since 2000, they went up and up and up.

And if they carried on in that vein, Look, they might have gone up to there. Instead, look at what happened post 2008. Something very different. That's basically the kind of flatlining, the stagnation they're talking about, to the extent that now there's this big gap. So we're all worse off to the tune of about £201.

And that's not the only issue. Look at the gap between rich and poor. So this is something called the Gini coefficient. It's a measure of income inequality. And you can see the UK, the higher these bars are, the more unequal.

The UK is much more unequal than many other countries around Europe, particularly Northern Europe, particularly the Nordics, and only the US in this group is more unequal. So it's those 2 issues together that they say is a problem, but also too is this. This is showing you home ownership by generation. You can see, look, people born in the 50s, the 40s, the 60s, as they get older, they get more home ownership. So more people owning their homes as they get older.

You can see their ages there. But look what happens now when you're talking about kind of millennials and you're talking about those born in the 80s, those born in the 90s. It's not going up so quickly. So they're not able to get on the housing ladder quite so quickly. That's a big issue.

Potentially, you need more homes as a result of that. And so too is this. This is looking at the gap between major cities and the smaller towns and regions in different parts of Europe. So you've got France, you've got Germany, you've got Spain, you've got Italy as well. Have a look at the UK, OK?

Have a look at these bubbles. So there you've got London, obviously, Manchester there in the middle, Powys and other parts of the UK at the bottom end. But it's this gap that is quite concerning, a bigger gap between London and the rest. And these lower income parts of the UK, far lower, look, you can see, than, for instance, in Italy or in Germany. So that's a concern in terms of the way that that wealth, the way the income is distributed around the UK.

And so too, says the Resolution Foundation, is this. This is showing you wealth going up over the years. So it goes higher and higher, higher. Now look at wealth taxes. So the amount we tax wealth, and that's basically being flat.

And Their implication, at least, is that maybe you need to tax wealth a little bit more. It's just 1 of many suggestions they have in this report. Doubtless there's going to be more debate on this as the election approaches.

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