Britain's economic landscape is a "powder keg" primed for a populist explosion mirroring Donald Trump's 2016 ascendancy, according to a stark warning from senior Labour MP Liam Byrne. The former Cabinet minister argues that without immediate and transformative action to tackle the nation's profound productivity crisis and glaring regional disparities, the UK remains acutely vulnerable to political upheaval.
Byrne, who chairs the influential Business and Trade Select Committee, draws direct parallels between the discontent that fuelled Trump's victory and the simmering frustrations within Britain's "left behind" communities. His analysis suggests that the same underlying economic grievances—stagnant wages, perceived neglect by metropolitan elites, and a deep-seated sense of unfairness—provide fertile ground for similar disruption.
The Productivity Puzzle
At the heart of Byrne's argument is the UK's intractable productivity problem, which has plagued the economy for nearly two decades. He points to a shocking statistic: output per hour worked has grown at its slowest rate in 120 years since the 2008 financial crisis. This stagnation directly translates into squeezed living standards and faltering economic growth.
"We are in the midst of the worst productivity crisis since the Industrial Revolution," Byrne stated, emphasising that this isn't merely an economic statistic but a lived reality for millions of Britons.
A Nation Divided
The MP's report highlights a country fractured by extreme geographic inequality. The analysis reveals a staggering 70% of the UK's fastest-growing firms are concentrated in just three regions: London, the South East, and the East of England. This leaves vast swathes of the nation, particularly in the North and Midlands, struggling to attract investment and generate high-quality jobs.
This regional imbalance, coupled with a sense that the economic system is rigged against ordinary people, creates the perfect conditions for populist rhetoric to gain traction, Byrne warns.
A Call for Radical Action
Byrne is urging the next government, regardless of its political colour, to adopt a radical new approach. His proposed solutions include:
- Devolution of economic power: Empowering local leaders with the tools and funding to stimulate growth in their regions.
- Supercharging innovation: A renewed focus on commercialising British research and development to create new industries.
- Workforce investment: A revolution in skills training and lifelong learning to prepare workers for the jobs of the future.
- Rewriting the rulebook: Implementing a new, modern industrial strategy that actively tackles regional disparities.
The message from Westminster is clear: without a concerted effort to build a more inclusive and dynamic economy, the UK risks experiencing its own version of the political shock that reshaped American politics.
