IFS Zooms In: The Economy

The UK is one of the most geographically unequal countries in the developed world. People living in London and the South East tend to have higher incomes, higher levels of education and better health outcomes than people elsewhere in the country.But why did Britain become so regionally unequal? How much of the divide is driven by the shift away from industry and towards services? What role has public investment, infrastructure and decades of regional policy played? And what can policymakers realistically do to change things?In this episode, part of our mini-series on inequalities, we look at the scale of the UK’s regional divides, why London has become so dominant, and whether stronger cities, devolution, better coordination and more stable policy could help narrow the gap.Helen speaks with IFS economists Jonathan Cribb and Xiaowei Xu to ask what “levelling up” should mean in practice, whether improving opportunities outside London could boost national productivity, and how politicians should think about places that may not benefit directly from big-city growth.This episode draws on work done as part of the IFS-Deaton Review, funded by the Nuffield Foundation.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

Around 80% of people think the gap between those on high and low incomes is too big. But only around 40% think the government should redistribute income from the rich to the poor.Why is there such a gap between concern about inequality and support for action to reduce it?In the second episode of our mini-series on inequality, we ask why people care about inequality, whether they distinguish it from poverty, and how views about luck, hard work, wealth and power shape attitudes to policy.Helen Miller is joined by Jonathan Cribb, Deputy Director at IFS, and Bobby Duffy, Professor of Public Policy and Director of the Policy Institute at King’s College London. They draw on work for the IFS Deaton Review of Inequalities, funded by the Nuffield Foundation, to explore what the British public thinks about inequality, what kinds of inequality worry people most, and what they want government to do about it.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

In the first episode of our new series, we set out the big picture on inequality in the UK. We look at what has happened to income and wealth inequality and how Britain compares with other countries.But inequality is not just about money. It shapes people’s opportunities, education, health, family life and where they live. Some gaps have narrowed over time, while others remain stubbornly wide - and some inequalities in one generation can shape the chances of the next.Helen speaks with Paul Johnson and Jonathan Cribb to explore what the key facts tell us about modern Britain, what kinds of inequality we should worry about most, and where trade-offs with growth, fairness and redistribution become unavoidable.This episode draws on work done as part of the IFS-Deaton Review, funded by the Nuffield Foundation.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

Britain’s public finances are under pressure. Public debt is high, borrowing remains high, and the government is spending far more on debt interest than in the past. Taxes are heading towards historic highs, while public services remain under strain and demand on the state continues to rise. In this episode, we set out the fiscal backdrop that will shape British politics over the coming years. Whoever is Prime Minister or Chancellor will face many of the same constraints: expensive borrowing, difficult spending choices and the need to get debt on a more sustainable path. Helen Miller is joined by IFS colleague Max Warner and Chris Giles, economics commentator at the Financial Times, to explain the state of the public finances, why borrowing costs matter, what the government’s fiscal rules do, how realistic current spending plans are, and whether there is any room for a future government to do things differently.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

Local government affects almost every part of our daily lives: bins, roads, planning, housing, schools, social care, public health, libraries, parks and more. But despite this, local elections are often discussed mainly as a test of national politics - with far less attention paid to what councils actually do, what councillors can change, and why so many councils are under such severe financial pressure.In this episode, we ask what local government is responsible for, how councils are funded, and why rising funding has not been enough to keep up with rising demand. We look at the pressures from social care, homelessness, SEND and other statutory services, and ask what it really means when a council is described as effectively bankrupt.Helen is joined by David Phillips from the Institute for Fiscal Studies and Aileen Murphie, honorary Professor at Durham University, and formerly at the Department for Communities and Local Government, and the National Audit Office.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

In a few weeks, voters in Wales will choose the next Welsh Government in what could be a historic election. With Labour’s long dominance under pressure, this episode examines the fiscal backdrop to the campaign and the difficult choices facing whoever takes power.Helen is joined by Joe Rossiter, Co-Director of the Institute of Welsh Affairs, and IFS economist David Phillips, to discuss how Wales is funded, how the block grant from Westminster has changed over time, and how devolved tax powers have — and have not — been used. They assess the state of Welsh public services, ask whether Wales should have more powers over tax, spending and borrowing, and explore the constraints facing the next Senedd.They also look at what the parties are promising, where the main dividing lines lie, and why many of the biggest trade-offs are still not being clearly spelled out.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

Scotland receives significantly more funding per person for devolved public services than England, helping to pay for policies like free university tuition and smaller school class sizes. But despite that advantage, performance in parts of health and education remains under pressure, and Scotland’s fiscal outlook is becoming tighter.In this episode, Helen is joined by Mairi Spowage of the Fraser of Allander Institute and IFS Associate Director David Phillips to unpack the big economic and fiscal questions hanging over the Scottish Parliament election. They explain what powers are devolved, where Scotland’s money comes from, how tax and benefit choices have made the system more progressive, and why the next Scottish Government will face difficult trade-offs.They also discuss Scotland’s public service performance after Covid, the risks created by recent budgeting habits, and the issues politicians may prefer not to talk about as manifesto season begins.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

The state pension age is rising. It is currently 66, and by 2028 it will reach 67. But what does that actually mean for the people approaching retirement, and does it really mean everyone will have to work longer?In this episode, Helen is joined by Jonathan Cribb and Heidi Karjalainen to examine one of the biggest questions facing the pensions system: how high should the state pension age be? They discuss why it has been rising, what the state pension is designed to do, and how changes to the pension age affect work, retirement and government spending.They also look at who is able to keep working into their late 60s, who is not, and whether a single state pension age makes sense for everyone. Along the way, they explore how the UK compares with other countries, what happens to people who cannot work up to pension age, and whether the state pension system is financially sustainable in the long run.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts