Jeremy Hunt, the Chancellor of the Exchequer, believes that Britain has the potential to become the most prosperous 21st century economy. Despite acknowledging that the UK is currently facing challenges, Hunt compared it to a "sprain rather than a broken leg" on the road to recovery.

Transformative growth measures

Hunt backed his growth measures, which he described as "transformative," emphasizing the need for improved productivity in order to boost the economy. The Chancellor announced tax breaks as part of 110 growth measures, aiming to attract £20 billion of annual investment. One of these measures, known as "full expensing," allows companies to claim 100% of the cost of investments.

Competing with Germany, France, and the US

Hunt believes that these growth measures will help bridge the gap between the UK and its competitors, such as Germany, France, and the US, where firms invest more. He highlighted the importance of innovation in the UK's economic success, stating that solving the productivity issue would lead to unstoppable growth.

Back-to-work scheme and improving living standards

The Chancellor also announced a back-to-work scheme aimed at assisting 1.1 million people with health conditions, disabilities, or a history of long-term unemployment. Despite a report by a think tank indicating that wages have flatlined compared to other advanced economies, Hunt remained positive. He stated that raising productivity is the key to raising living standards.