Mohamed A. El-Erian , Columnist

Labour Is Risking Its Encouraging Economic Start

The UK government’s laser focus on growth is being undermined by endless debates on individual fiscal measures.

September 16, 2024 at 4:01 AM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Staying the course.
Photographer: Christopher Furlong/Getty Images Europe

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Having campaigned on the importance of strong, inclusive and sustainable prosperity, the Labour government wasted no time following its election in framing growth as a “mission” and announcing an initial set of measures to revive the economy. Two months later, it risks losing this growth focus as the national economic narrative shifts to endless debates on individual fiscal measures.

Of course, growth is not the answer to every ailment in the UK. But without a consistently expanding economy, inequalities and social divisions will increase, political polarization will intensify, and it will be harder to counter the climate crisis. Along with all this, the UK’s fiscal situation will worsen.