Research institute publishes ideas to get economy going

Sheffield University professor Colin Hay
Sheffield University professor Colin Hay
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‘Hard-hitting practical policy suggestions’ to help the British economy return to growth have been published by Sheffield University.

The first of a series of papers published by the Sheffield Political Economic Research Institute calls for key policy changes which could help turn the UK’s ailing economy around.

Sheffield University professor Colin Hay

Sheffield University professor Colin Hay

Colin Hay, Professor of Political Analysis and co-director of the institute, said: “In basic terms we are calling for channelling the supply of credit from housing and consumption into longer term growth-generating strategic investment in new technologies, education and infrastructure.”

In the paper, titled The British Growth Crisis: a Crisis of and for Growth, Professor Hay picks out key policy implications which could result in a ‘more sustainable’ model of growth.

His ideas include shaming banks into reducing interest rates they are charging consumers and home-owners as well as commercial borrowers on their debt for mortgagees, which are now typically 10 times the base rate.

Prof Hay also calls for an internationally-coordinated strategy for managing debt and growth.

He said: “My hope is that in this paper I have made a compelling case.

“We very much hope that these ideas and the analysis on which they draw will be taken up in Government policy.”