The Social Mobility Commission’s report, Innovation, investment and inclusion, calls for bold changes to drive economic growth and opportunity in the UK’s most disadvantaged areas.
The report, by the Commission’s Economic Growth and Investment Group, makes several recommendations to promote investment, entrepreneurship, and skills.
Through these recommendations, it aims to encourage growth and innovation in areas of economic disadvantage outside of London and the south east.
What the report recommends
The Commission’s Economic Growth and Investment Group makes recommendations across three key areas to encourage growth and innovate in Britain’s ‘left-behind regions’.
These include:
Encouraging investment
- Creating ‘Opportunity Zones’ in every region of the UK, and providing Capital Gains Tax incentives when people invest in the poorest parts of the UK.
- Calling on pension funds to invest more in UK growth.
- The creation of Strategic Growth Plans for every region, which are long-term, business-led, locally coordinated and nationally backed.
- Developing a new monitoring system – a Social Mobility and Dynamism Index – to track regional progress and guide policy.
Supporting entrepreneurs
- Expand entrepreneurial education in schools, colleges and Job Centre Plus offices.
- Revive the New Enterprise Allowance, with £3,000 trading allowance and mentoring for entrepreneurs on Universal Credit.
- Provide local start-up support through hubs and co-working spaces, particularly in disadvantaged areas.
Skills development
- Apprenticeship reform to give small and medium-sized enterprises (SMEs) more flexibility.
- Mentoring programmes and job coaching, especially for young people from lower socio-economic backgrounds.
- Flexible budgets (worth up to £3,000) for adults living in disadvantaged areas to use for skills courses and qualifications.
What is the Economic Growth and Investment Group?
The report comes from the Commission’s Economic Growth and Investment Group, which aims to boost growth entrepreneurship and investment in areas of economic disadvantage outside of London and the south east.
The group is composed of leading entrepreneurs, business experts and economists from across the UK.
Rob Wilson, Deputy Chair of the Social Mobility Commission and Chair of the Commission’s Economic Growth and Investment Group, said:
“Successive UK governments have tried and largely failed to improve economic growth in ‘left behind’ regions in the UK. Many of these policies have been frustratingly fragmented and limited. With growing pressure on public funding, it’s time for a radical new approach that encourages private investment in the areas that need it most.
“This report offers a bold new vision for social mobility, one which harnesses the power of regional leadership, devolution, and private investment to bring real change to some of the UK’s poorest communities. Our proposal for Opportunity Zones represents exactly the kind of place-based approach we need to tackle the extreme regional disparities that exist in the UK today.”
Karen Barrett, Founder and Chief Executive Officer of Unbiased and Member of the Economic Growth and Investment Group, said:
“If we want to tackle regional disparity and encourage private sector investment, the Government needs to bring businesses on board. This latest report from EGIG paves a new path, showing how private business and the public sector can work collaboratively to create meaningful opportunities in disadvantaged areas.”