Britain is one of the wealthiest countries in the world, with more than £12 trillion in financial wealth. So why are wages stagnating, public services struggling, housing becoming increasingly unaffordable, and millions of people feeling poorer?

In this video, I argue that Britain’s economic problems are not simply the result of recent crises. They are the consequence of decades of political and economic decisions that have prioritised financial extraction over productive investment.

Britain has consistently invested less than other major developed economies. In 2024, total investment amounted to just 17.9% of GDP, the lowest proportion in the G7. That means we have failed to invest adequately in the infrastructure, technology, skills, housing and public services needed to create lasting prosperity.

I examine the evidence showing how both business and government investment have fallen short, leaving Britain less productive and less economically resilient than it should be.

At the same time, our economy has increasingly rewarded financial extraction. Interest, rents, fees, dividends and speculation have generated financial returns without necessarily creating the productive assets or public benefits that society needs.

Privatisation has compounded these problems. Essential services such as water, energy and transport have been operated to generate private financial returns, often at the expense of investment, affordability and service quality.

Meanwhile, rising property prices and financial asset values have benefited those who already own wealth, while people dependent on wages have experienced much weaker improvements in their living standards.

I argue that these outcomes were not inevitable. They resulted from political choices that successive governments could have made differently.

Britain has the people, skills, knowledge and resources to achieve much more. But prosperity requires productive investment, fairer distribution of economic rewards and a government willing to challenge the interests benefiting from the current system.

This is the first of two videos examining Britain’s economic problems. Today, I explain why we are poorer than we should be. In tomorrow’s video, I will explain what we can do about it.