What Britons really think about growth

New landmark research from the IEA on British attitudes to economic growth

Landmark new public opinion research published by the Institute of Economic Affairs has found that the British public overwhelmingly supports economic growth. Eighty-seven per cent say the country should focus more on growth, with just 9% saying the country is already wealthy enough. This consensus holds across all age groups, income levels, regions, and political affiliations – demonstrating a lack of appetite for “degrowth” narratives among the public.

After an average growth of just 1.5% since 2008, Brits are extremely pessimistic about the state of the UK economy. Two-thirds think Britain is going in the wrong direction and rate the economy as poor, while two-fifths don’t think Britain’s economy has any major strengths. One respondent asked “Why is everything getting more expensive when my pay isn’t going up?”.

The new polling and focus groups, conducted by Freshwater Strategy for the IEA, is one of the largest and most comprehensive research projects on British attitudes to economic growth. It found strong support for many market-led explanations of Britain’s lack of growth, including high energy costs (85%), high taxes (75%), trade barriers (74%), too much red tape (74%), employment laws (64%) and strict planning laws (55%).

But there is also agreement among voters on alternative explanations, such as wages being too low (78%), lack of investment in public services (77%), companies prioritising profit (73%) and the political system being rigged in favour of the wealthy (72%).

To fix the problem, there is strong underlying support for market-oriented reform, including reducing energy costs (77%), cutting taxes on workers (72%), and 66% support cutting taxes on businesses.

However, the study found that understanding of growth is weak and people are sceptical about who will benefit. When asked what GDP growth means, one-third (32%) of respondents said they were unsure or did not know, and more thought that the government and big business were likely to benefit from growth than they or their families would. One young respondent said “I don’t think I’ve ever seen real economic growth to know what it actually feels like or looks like”.

There is also a striking gap between perception and reality when comparing the UK internationally. A majority of Brits wrongly believe that the average person in the UK is as rich, or richer, than those in Singapore, Germany, Australia, and much of Western Europe, when the opposite is true.

Britons place the UK 7th among US states, on average, in terms of GDP per capita, believing it is richer than 43 of them. In reality, the UK ranks last, behind every single US state. When told this, 27% of respondents said they felt shocked, with a further 15% expressing disappointment or embarrassment. Focus group participants similarly responded with anger and frustration – “it suggests that there needs to be change in the UK because we can’t be fifty-first, there’s no way” said one focus group participant.

The research highlights that when growth is linked to tangible personal benefits – higher wages, lower bills, more homes, better public services – support for pro-growth policies strengthens further.

Summary

• Britain is experiencing a prolonged period of economic stagnation, if not decline. Most people believe living standards have declined and that the country is heading in the wrong direction.

• Support for economic growth is broad and deep, spanning all age groups, regions and political affiliations, with most Britons believing the UK should place greater priority on growth. There is no public appetite for ‘degrowth’ narratives.

• However, many voters do not clearly grasp what economic growth means, what drives it, or why it matters. Younger voters in particular often struggle to connect growth with the benefits of productivity, business investment, and rising living standards.

• The public also remains sceptical about who benefits. While most people believe growth matters in principle, many worry that much of the gain will go to someone else – namely, government, big business and higher earners – rather than to themselves, their families and their communities.

• Although voters recognise that the economy is weak, they underestimate the scale of Britain’s relative decline compared to peer economies and the United States. When confronted with the true picture, they react with shock and embarrassment, creating an emotional jolt that increases openness to change.

• Public opinion on the causes of stagnation is often confused and contradictory. Voters support market-orientated explanations for low growth, such as too-high taxes, too- 8 high energy costs, and excessive red tape, but they also endorse more interventionist strategies for achieving high levels of growth.

• This reflects a broader ‘kitchen sink’ mindset: wanting to throw everything at the problem. People distrust politicians and government, often blaming them for economic decline, yet still instinctively look to the state to fix the problem. This leads to frustration without a coherent diagnosis.

• Even so, there is real openness to pro-growth reform. A majority of Brits support measures such as reducing energy costs, cutting taxes, and easing regulation, especially when framed as resulting in lower bills, higher wages, more homes, and better public services.

• The biggest political obstacles to support for pro-growth measures are perceptions around fairness. Anti-growth arguments gain traction when people believe growth will deliver greater benefits to others, especially the wealthy, while imposing potential costs or greater risks on ordinary workers and families.

• Voters distrust big business and significantly overestimate profits, holding the belief that economic growth benefits corporations at the expense of consumers. Bridging this gap by emphasising the role of businesses in creating jobs, delivering prosperity, and boosting innovation, is key to building a credible case for economic growth.

• The central strategic lesson is that the case for growth must be practical rather than abstract, grounded in tangible benefits. To build a durable mandate for reform, growth must be linked directly to personal and local benefits, while it is made clear that Britain’s stagnation is the result of barriers that can be removed, failures that can be reversed and political choices that can be changed.

This project was made possible through the support of grant [#63661] from the John Templeton Foundation. The opinions expressed in this publication are those of the author(s) and do not necessarily reflect the views of the John Templeton Foundation.