Public support for stronger economic growth in the UK is widespread, but many Britons remain sceptical that they will personally benefit from it, according to new research.
A major survey and focus group study commissioned by the Institute of Economic Affairs (IEA) finds that 87 per cent of respondents believe the UK should prioritise economic growth more heavily, while just 9 per cent think the country is already wealthy enough.
The research suggests a strong rejection of “degrowth” ideas across all demographics, with support for growth consistent across age groups, income levels and political affiliations.
However, the study also highlights deep pessimism about the UK economy. Around two-thirds of respondents believe Britain is heading in the wrong direction, with many describing living standards as stagnant or worsening in real terms.
A recurring theme is the perception that wages are not keeping pace with rising costs, with one respondent asking: “Why is everything getting more expensive when my pay isn’t going up?”
The report finds broad agreement on the causes of weak growth, including high energy costs, taxation, regulation and trade barriers. At the same time, many respondents also point to low wages, underinvestment in public services and perceived inequality in the economic system.
When asked how to improve growth, most favoured reducing energy bills, cutting taxes and easing business regulation, though support varied depending on how directly benefits to households were made clear.
A significant finding is that understanding of economic growth remains limited. Around a third of respondents said they did not know what GDP growth actually means, and many believed large companies or the government would benefit more than ordinary households.
International comparisons also revealed widespread misperceptions. Many respondents overestimated the UK’s relative wealth compared with countries such as Germany, Australia and Singapore, while incorrectly placing Britain near the top of US state-level income rankings.
When informed of the actual rankings, reactions included shock and disappointment, suggesting a gap between perception and economic reality.
The study also highlights strong support for affordability over climate policy trade-offs. A majority said they would prioritise economic growth even if it resulted in some environmental harm, while a large share favoured keeping energy prices low even if it slowed progress towards net zero targets.
The findings suggest that while there is clear political space for pro-growth policies, public backing is conditional: voters are more likely to support reforms when they believe they will directly improve living standards rather than benefit businesses or institutions.
Researchers conclude that support for growth in Britain is strong but fragile—rooted less in ideology and more in a desire for visible improvements in everyday life.
The Rt Hon Lord Frost, Director General of the Institute of Economic Affairs, said: “Britain’s economy has barely grown per head in nearly two decades.
“This research makes clear that the public knows something is deeply wrong — and they feel it. People overwhelmingly want growth, and they are ready if necessary to back the reforms to get it: lower taxes, cheaper energy, less red tape. The obstacle to growth isn’t public opinion. It is a political class that refuses to act.
“Our work shows that there are votes to be won by being unapologetically pro-growth. The main risk is people’s scepticism that they will be the ones to benefit. Politicians have talked up growth for years, but people haven’t felt it. Our political leaders need to stand up and communicate how growth will benefit everyday families, then back the reform necessary to deliver it. To the victor will go the electoral spoils.”
Dr Kristian Niemietz, Editorial Director of the Institute of Economic Affairs said: “Britain is barely any richer today than it was 18 years ago.
“Compared to the previous century and a half or so of British economic history, this period constitutes an anomaly. The lack of economic progress should be the No. 1 public policy issue of our time: the issue that keeps policymakers and opinion formers from across the ideological spectrum awake at night.
“This landmark study shows that while political discourse in Britain may not always reflect it, Britain is clearly not a country that is comfortable with economic stagnation and relative decline. We still have the social expectations associated with a growing economy.
“What we do not have is the economic performance to match those expectations.”
Matthew Lesh, Country Manager at Freshwater Strategy and Public Policy Fellow of the Institute of Economic Affairs said: “A nation in economic stagnation isn’t just some statistical artefact. It’s colouring every day.
“Across our focus groups, we heard the same story again and again: rising costs, stagnant wages, and a sense that the system is no longer delivering. When economic growth disappears, so too does the feeling of progress. In its place comes frustration, pessimism, and a growing loss of faith in institutions.
“But this research has not found a country that has given up on growth. The overwhelming majority of Britons want the economy to grow, and when growth is linked to real, tangible outcomes, such as higher wages, lower bills, and more affordable homes, support becomes near universal.
“The problem is that, after many false promises, people no longer trust that growth will benefit them. Rebuilding that link between economic growth and everyday life is now the central challenge for policymakers, and the key to delivering pro-growth policies that restore prosperity and public confidence.”
Leave a Comment