Pranesh Narayanan

Senior Research Fellow @IPPR

[Pranesh Narayanan @Narayanator]

Today’s industrial strategy made some clear strategic choices for the future direction of the UK economy. IPPR found that there are opportunities for the UK in three key clean technology industries, all of which are featured in the strategy 1/8

[Pranesh Narayanan @Narayanator]

Electricity costs were not the root cause of our manufacturing ills until the 2020s - we had cheaper industrial energy than Germany for the entire post-financial crash era when productivity growth stalled, this is a culture war take not a serious economic analysis

[Ben Ramanauskas @BenRamanauskas]

If you look at TFPG in 🇬🇧 most industries did recover apart from the two big ones (finance & manufacturing).

This can be explained by the increase in regulation for finance and crippling energy bills (Net Zero etc) for manufacturing.

[IPPR @IPPR]

Equalising Capital Gains Tax (CGT) with Income Tax is a no brainer. Here's why:

👉 It would raise around £14bn a year.

👉 It is only paid by around 0.65% of the adult population (350,000 people), but most CGT revenue only comes from the 0.02% of the population who make gains of over £1 million.

👉 Politicians of all stripes believe it is fair to tax work and wealth the same. It was famously pro-growth Conservative chancellor Nigel Lawson who equalised CGT with income tax rates in the first place.

👉 A cleaner going to work should not pay more tax than someone who gets their income from shares or investments.

👉 It's a tax rise that wouldn't hamper growth, investment or entrepreneurialism. It is a tax rise supported by millionaires (@PatMillsUK).

[Pranesh Narayanan @Narayanator]

@jo3hill because by definition a capital gain only happens once you've made money on an asset appreciates... it is only a tax on the upside you will not be paying it unless you've made money so.

[Pranesh Narayanan @Narayanator]

@saffronhuang Lovely utopia but where will government get the resources to create these programmes and jobs when AI eliminates gov's primary source of revenue (income taxes), whilst the balance of opinion in silicon valley is firmly against wealth taxation?

[IPPR @IPPR]

"British workers have half as many robots, machines or modern equipment than their equivalents in France and Germany. And that is setting them up to fail".

📻 IPPR's Sam Alvis on @LBC 👇

[Pranesh Narayanan @Narayanator]

More details on the scheme and how I think its eligibility criteria should be designed here:

https://t.co/bsA2a8Wcd5

[Pranesh Narayanan @Narayanator]

British industry faces a double squeeze: companies are investing too little, and they face some of the highest electricity costs in Europe, and the two are related. Here's more about what this means for workers and one way government can help 👇

[Pranesh Narayanan @Narayanator]

The government has an upcoming scheme to cut electricity costs for around 7,000 businesses. They should find out which companies are holding back investment due to high electricity costs, and prioritise support for them.

[Aaron Bastani @AaronBastani]

The line from the right wing press over the next few months will be that this would never have happened if only we spent an extra £5 billion on defence spending.

A few British destroyers could have stopped all of it!

[Pranesh Narayanan @Narayanator]

More solar panels means more electricity supply and less reliance on fossil fuels - ordinary people understand this even if vested interests keep trying to shift the focus on to the North Sea

[BBC News (UK) @BBCNews]

Octopus Energy boss: We've seen a 50% rise in solar panel sales since start of Iran war https://t.co/vUyM5LBtx2

[Simone Gasperin @S_Gasperin]

For decades the UK failed to capture the manufacturing value associated to its leading offshore wind industry - as we analysed in an @IPPR report ("A Second Wind").

Today's investment by @Vestas for a new nacelle factory in Scotland could mark the beginning of a new trend.

[IPPR Scotland @IPPRScotland]

“It’s essential that the UK and Scottish governments work together to ensure this project is pushed forward and that ground is broken on the factory ASAP."

Read our response to Vesta's decision to invest in a new nacelle & hub factory in Scotland⤵️

https://t.co/NJEMhPNqtO

[Pranesh Narayanan @Narayanator]

https://t.co/cPA7f9wqR3

[Pranesh Narayanan @Narayanator]

Huge news for the UK industrial strategy, and the Clean Power sector plan – Vestas has announced a major new wind turbine manufacturing investment in Scotland. It’s particularly significant since this facility will produce nacelles, the most valuable component of a wind turbine.

[Pranesh Narayanan @Narayanator]

We at IPPR have been arguing for a while that the UK would greatly benefit from a Nacelle plant and it’s great to see this is actually happening. This will create new, secure job opportunities and a real regional economic boost for Scotland. https://t.co/KC583vt6zk

[Pranesh Narayanan @Narayanator]

@Stsantek @TufnellHenry @GMBScotOrg how have we made the link between de-industrialisation and our oil and gas output?

[Pranesh Narayanan @Narayanator]

Economic resilience as a bedrock to this theory is welcome in an era of global instability.

Announcements on additional funding for investment in cities, closer alignment with Europe and a push towards greater fiscal devolution are all positive for growth too

[Pranesh Narayanan @Narayanator]

The Mais lecture today was Rachel Reeves' chance to narrate this government's theory of growth.

She doubles down on an agenda that has government actually doing stuff in the economy. a welcome shift from the old status quo where it takes a back seat to short-termist markets

[Faisal Islam @faisalislam]

NEW:
Chancellor announces three major themes for a new growth strategy at a Mais lecture in a fortnight:

1. Stronger post Brexit trade relations with EU
2. Backing innovation and AI
3. Transforming UK economic geography/ regional & city growth

Setting up high expectations for a policy heavy growth strategy.