Supply Side Policies Flashcards
What is the national productivity fund?
£31 billion
Education supply side policy #1
£400m school funding 2019
Greater funding for schools
On average £50,000 more to secondary, £10,000 more to primary
Education supply side policy 2
More funding for schools to attract more to take maths and computer science A-Levels, so to improve productivity in the future
Education SS policy 3
Curriculum reform
A-Level, GCSE & Primary
To improve results in schools and boost productivity
Introducing T-Levels, practical based A-Levels to replace A-Levels for those who want to go into more practical routes post-school
Education SS policy 4
Government spending on apprenticeship schemes & an apprenticeship levy has been introduced where firms have to spend a certain % of worker costs on apprentices
Education SS policy 5
Subsidies and grants for adult training
Healthcare
NHS budget increasing by £20.5 billion above inflation by 2023
To promote a more healthy and productive workforce
Infrastructure SS policy 1
£28.8 billion 2020-25 as part of a National Roads fund (improve. Maintain roads and solve congestion issues)
Infrastructure SS policy 2
Rail infrastructure projects:
- Cross rail: connecting Reading to Far East London, nearly finished. Improve rail capacity with and around London. £18 billion. Largest infrastructure project in Europe atm
- Announced HS2, Leeds to London. Improve geographical immobility of labour. Estimated £60 billion
Infrastructure SS policy 3
£1 billion on digital infrastructure
Improving 5G mobile networks access. And connecting more houses with full fibre networks
Income tax cuts
Tax free allowance: £6,500 to £12,500
Encourages people outside labour force to work, and incentive for increased productivity
Income tax cut 2
40% threshold starts at £50,000
Investment incentives
£1m investment tax free allowance
Investment incentive 2
Tax relief for SMEs who engage in r and d
Welfare reform 1
Introduction of universal credit
One means tested benefit
To get rid of lots of existing benefits like housing, child, tax credit, UE,
Incentive to get people into work
Universal credit welfare caps
Create incentive to not rely on welfare
Deregulation
Got rid of unnecessary Housing market planning permission regulation. Easier to build houses to deal with supply issues and hopefully make housing more affordable
Deregulation 2
£10bn Red tape cut
Makes it easier to do business
Done this by saying for every bit of new regulation they’ll get rid of 3
Encourage businesses to find unnecessary regulations that they can get rid of too
Trade liberalisation
Post-Brexit trade deals
Want to be a free trade UK economy
Boost competition and efficiency as more open to competition
