Our over-reliance on imports is harming the recovery

It is new markets, not existing ones, that are key to securing long-term economic growth for the UK

For all the disagreement about how to fix the UK economy, there are a few truths about the roots of the present slump that most people accept. In the good years leading up to the crisis, Britain lived beyond its collective means, and built an economy that couldn’t last. Part of this excess was fuelled by cheap, irresponsible credit; part of it was built on the UK’s huge and long-standing trade gap. Since 1997, the UK has consistently imported far more than it exported, creating a serious imbalance that paved the way for the financial crash.

Our research, published today, provides new insights into how the UK economy became so unbalanced. Over the last 15 years, the UK has performed extremely poorly by not providing the products which consumers increasingly want to buy. Consumers appetites for certain products has proved insatiable; in 2009 we bought over eight times more consumer electronics and twice as much clothing as we did in 1997. The problem is that most of this growth was met through an increase in imports, and not domestic production.

Many observers see patterns such as these and assume they are driven by well-established economic arguments about international competitiveness, with the high cost of production in the UK preventing more manufacturing taking place here. Whilst this is undoubtedly true of some low cost products - clothing springs to mind - this line of reasoning often falls down, even for low-tech industries. Recent research showed that the UK now imports more than half of its bacon from the Netherlands and Denmark, where wages in meat processing are twice the level here. Even more concerning is our performance in high-tech sectors such as consumer electronics, where the high value of the goods produced tends to override cost concerns. The UK is an anomaly amongst other advanced economies in being extremely weak in these markets.

What is most worrying, however, is the sheer scale of this shift, and the fact that increases in our imports of consumer products have not been compensated by a large enough rise in exports. Take clothing, consumer electronics and vehicles. Together our poor trade performance in these product markets accounts for more than 40 per cent of our goods deficit. This suggests our difficulty in providing consumers with enough of the things they want to buy, even in just a few key markets, can and is acting as a large drag on the UK economy. We have some outstanding consumer facing businesses in the UK, such as Unilever and Dyson. The problem is we don’t have enough of them to reverse the persistent UK trade problem.

So what should the government be doing to put this right? Part of the response should be to try and increase exports of those things that we are good at, including business services like consultancy and architecture. But that will only take us so far - we also need a greater emphasis on trying to foster the emerging consumer markets of the future, and on making the UK a world leader in these areas. This isn’t just about inventing more technologies – it is about how we use them. The UK’s world-class science base is excellent at generating new ideas, but businesses need far more support to overcome the barriers they face in turning these technologies into high-growth markets.

Take 3D printing as an example. The ability to print personalised goods on demand has real potential for the UK economy in the future, but there are many state-controlled levers that need to be co-ordinated to make it actually work in real life. Without the right regulations to foster consumer and business confidence, without standards to make software and materials compatible with each other, without the necessary physical and electronic infrastructure, 3D printing will remain a niche market in the UK, and will probably take off in another country first. We need to get these things right, and quickly, if the UK wants to be a world-leader in 3D printing – and these principles will apply to many other emerging technologies over the next decade.

Policymakers already lay out and co-ordinate their long-term strategy for many established sectors. Just yesterday the Department for Business, Innovation and Skills published their strategic vision for UK aerospace, for instance. But we want to see this approach applied to those new and innovative markets that have the greatest potential for exports and domestic demand. We would argue that it is the new markets, not the existing ones, that are key to securing long-term economic growth for the UK.

A port in Hamburg. Britain must cut back on its import addiction, according to a new report from the Work Foundation. Photograph: Getty Images

Spencer Thompson is economic analyst at IPPR

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The attack on Les Bleus was an attack on the soul of France - that's why Euro 2016 must go ahead

As a continent reels politically from the refugee crisis and emotionally from the Paris attacks, football must find a new, confident voice.

After the Paris attacks, the great Bill Shankly’s words have rarely been so tested: “Some people believe football is a matter of life and death. I am very disappointed with that attitude. I can assure you, it is much, much more important than that.”

As bombers detonated their suicide belts outside the Stade de France, French and German football fans cheered what they thought were fireworks. They were unaware that it was the opening salvo in a night of barbarity. One of the bombers had a ticket for the game but, mercifully, was turned back at the turnstile. Had his bomb gone off inside the stadium, the immediate loss of life, plus the panicked stampede and two more suicide bombers lying in wait outside for escaping fans, could have produced a death toll higher than at Hillsborough, Bradford, Heysel or either of the Ibrox ­stadium disasters.

The French intelligence services have yet to conclude publicly whether the attacks were timed to coincide with the prestigious friendly or whether the crowd of 80,000 was simply another target of bloodthirsty convenience on an already preordained date. Either way, there’s no mistaking that an attack on Les Bleus was an attack on the soul of France. In the aftermath, the Germany-Netherlands friendly game was called off and Belgian football went into lockdown.

How should British football respond? To those who think that the sport is just 22 players kicking a ball around a field, this may seem a peculiar question. But ever since the tail end of the 19th century, when football escaped from its self-enforced ghettoisation in Britain’s public schools, it has had a greater purpose.

More than any other sport, football has been intertwined with politics. As Harold Wilson said: “It’s a way of life . . . a religion.” When President Rowhani of Iran wanted to bolster his image as a new kind of leader, he didn’t deliver a speech but tweeted a picture of himself wearing an Iranian football top, watching a match. Franco’s dictatorship clung to the all-conquering Real Madrid and punished FC Barcelona. On Robben Island, ANC prisoners idolised Billy Bremner of Leeds United and successfully demanded the right to play football.

In October, one of the biggest protests against the closure of the north-east’s steelworks was from 10,000 Middlesbrough fans at Old Trafford. When Catalans challenged hikes in transport costs, they boycotted public transport from the Camp Nou. The biggest “Refugees Welcome” signs in Europe weren’t produced by governments but by fans of the Bundesliga champions, ­Bayern Munich.

So while the singing of the Marseillaise at the England-France match at Wembley was a “hairs on the back of the neck” moment, most of us understand that it’s not enough. What is less well known is that this wasn’t the first time that one of the world’s few genuinely inspiring anthems has been performed in earnest in British football. A century ago, bands took to the pitch to play patriotic British, French and Russian music – not out of altruism but military necessity. The British army was under intense pressure at Ypres and urgently needed new volunteers. The War Office turned to football.

For many, the journey to Loos, Flanders and the Somme started with a routine visit to cheer on their local team. Their sport transported them from a home football field to their foreign killing fields. Many clubs, including Everton, held military training on their pitches, while Manchester City’s then stadium, Hyde Road, became a 300-horse stable. Hundreds of players died serving in the Football Battalion.

But for too long our national sport reflected Britain’s lack of ease with diversity. From the 1920s, the religious sectarianism that poisoned the west of Scotland was allowed to fester in Glasgow’s football. The sport’s tolerance of recreational racism became widespread. Outside stadiums, right-wing extremists sold their propaganda while, inside, black players were vilified – even by their own supporters. Football’s racism corroded its heart and was rationalised in its head: it was allowed on the pitch, cele­brated on the terraces and accepted in the boardroom and far too many changing rooms.

And now, as a continent reels politically from the refugee crisis and emotionally from the Paris attacks, football must find a new, confident voice. The sport and its fans cannot sit on the subs’ bench at a time like this.

In a nation where only one in five male workers joins a trade union, football is a rare regular collective experience. It is more authentic than click-and-connect social media communities. Despite high ticket prices, football offers the one place where thousands of working-class men, including many politically disenchanted young men, come together in a common cause.

British football has long since jettisoned its ambivalence regarding racism. But for organised extreme right-wingers, Islamophobia fills the space vacated by the anti-Irish “No Surrender” tendency on the sport’s fringes. Although the number of top-flight British Muslim players is infinitesimally small, the streets of Bradford, Blackburn and Birmingham teem with young British Muslims kicking a football. More clubs can harness their power to inspire and increase their ­involvement in community counter-­radicalisation strategies. Clubs should also take the lead by having zero tolerance for Islamophobia, training stewards and backing fans who stand up to fellow supporters.

And, finally, the European Championships, for which all the home nations bar Scotland have qualified, must go ahead in France next summer. There’s no liberté in cancelling. In the name of fraternité, let’s all back France as our second team. Allez les Bleus!

Jim Murphy is the former Labour MP for East Renfrewshire and leader of Scottish Labour 2014-15.

This article first appeared in the 26 November 2015 issue of the New Statesman, Terror vs the State