When George Osborne first became Chancellor in 2010, he had a clear plan to “rebalance” Britain’s economy.
His “New Economic Model”, set out in the 2010
Mais lecture, involved lessening dependence on the City and other service sector industries and instead increasing the contribution of the likes of manufacturing and construction. That way, if a new banking crisis were around the corner, it would not deal the country such a big blow.
But, in the 5 years since, Osborne has well and truly failed to do any rebalancing, as the chart of GDP growth components from the Office for National Statistics below shows.
The service sector’s contribution to growth — the red dotted line — has steamed ahead, while other industries struggle to find a groove or growth.