If Britain is to regain its position as a world leader in innovation, industry, and growth, then it needs bold, intelligent economic thinking—not the tired slogans of economic nationalism.
Christopher Worrall is a housing columnist for LFF. He is on the Executive Committee of the Labour Housing Group, Co-Host of the Priced Out Podcast, and Chair of the Local Government and Housing Member Policy Group of the Fabian Society.
For too long, Britain’s economic strategy has oscillated between two extremes: cut-throat capitalism, where unchecked markets enrich a few while leaving workers behind, and cuddly capitalism, where excessive state intervention stifles growth and drowns innovation in red tape. But what if there was a better way—a system that balances competition with fairness, embraces innovation while ensuring inclusion, and fosters growth that benefits everyone, not just the elite?
This is precisely what Rachel Reeves’ securonomics seeks to achieve, and I believe it is rooted in the economic thinking of Philippe Aghion, one of the world’s most respected voices on growth, competition, and innovation. Unlike the economic nationalism peddled by Reform UK, which clings to an outdated vision of Britain retreating into industrial nostalgia, Labour’s economic philosophy offers a forward-looking, practical plan that puts Britain at the cutting edge of global innovation.
The Right Balance: Why Innovation and Inclusion Matter
At the heart of Aghion’s thinking—and by extension, Labour’s economic strategy—is the idea that an intermediate level of competition and innovation maximises economic output. Too little competition results in stagnation, monopolies, and inefficiency (think Soviet-style state control or bloated corporate giants that stifle progress). Too much competition, on the other hand, can create instability, short-term thinking, and race-to-the-bottom economics. The sweet spot? A system where businesses have the incentives to innovate but also the security to invest in long-term growth.
This philosophy underpins Labour’s push for an active industrial strategy, where government plays a strategic role in shaping markets, investing in key industries, and ensuring competition fosters, rather than hinders, innovation. Securonomics isn’t about picking winners—it’s about creating the conditions where winners can emerge.
Cut-Throat vs. Cuddly Capitalism: Finding the Middle Ground
Reeves’ economic approach rejects the worst aspects of both neoliberal, deregulated capitalism and excessively state-controlled interventionism. Britain doesn’t need a free-for-all economy where tech monopolies crush competition, gig workers are exploited, and financial speculation replaces real investment. But nor does it need a bloated state that tries to micromanage industries, dampens risk-taking, and stifles entrepreneurship.
Instead, I believe securonomics builds on the strengths of market-driven growth while ensuring that innovation benefits everyone. That means:
-Backing British industry by investing in R&D and making the UK a hub for high-growth sectors like AI, green technology, and life sciences.
-Encouraging fair competition by ensuring small businesses and startups can challenge established giants rather than being squeezed out.
-Empowering workers through skills training, education, and fair wages—because innovation isn’t just about new tech; it’s about people having the skills to adapt and thrive.
This is the smart capitalism Britain needs—one that drives prosperity without hollowing out communities or exacerbating inequality.
Green Growth: The Key to Long-Term Economic Strength
One of the most promising aspects of Labour’s economic agenda is its commitment to inclusive green growth. Aghion’s research shows that sustainable economies thrive when governments actively support green innovation, creating new industries rather than clinging to declining ones.
Reeves’ plan to establish a £7.3 billion National Wealth Fund and back strategic green industries—from offshore wind and battery production to electric vehicles and hydrogen technology—is exactly the kind of industrial strategy Britain needs. The old economic model, reliant on fossil fuels and financial speculation, is no longer fit for purpose. We must lead the world in clean energy and sustainable manufacturing, not be left behind.
Moreover, this approach isn’t just about saving the planet—it’s about jobs, investment, and long-term economic security. The green economy will be worth trillions in the coming decades, and Britain has the chance to be at the forefront. Securonomics ensures that we seize that opportunity.
Yes to Growth, Yes to Building: The Case for YIMBYism
If Labour truly wants to unleash Britain’s economic potential, it must tackle the planning system, which has long been recognised as a major bottleneck to investment, development, and growth. Reeves is right to push for a once-in-a-generation overhaul that cuts bureaucracy, speeds up housing developments, and makes it easier to build new industries.
This aligns with the Yes In My Backyard (YIMBY) movement, which advocates for pro-growth, pro-housing, pro-infrastructure policies. For too long, restrictive planning laws have choked investment, driven up house prices, and made it impossible to build the factories, labs, and transport networks Britain desperately needs.
Aghion has written extensively on the role of regulation in shaping economic dynamism, noting that excessive regulation can hinder innovation and growth. While he has not specifically targeted Britain’s planning system, his research aligns with the broader argument that a more flexible, innovation-friendly regulatory environment is essential for economic expansion. Reforming planning laws to unlock housing and infrastructure isn’t just good social policy—it’s an economic necessity.
Britain needs more affordable housing, more cutting-edge industrial parks, and more high-tech research hubs. Securonomics embraces pro-growth policies that let the UK build, innovate, and compete globally—not sink into a NIMBY-induced stagnation.
Reform UK’s Economic Nationalism is a Dead End
By contrast, Reform UK’s economic nationalism is little more than a desperate nostalgia act. The idea that Britain can reindustrialise by retreating from global competition, relying on outdated industries, and shunning foreign investment is pure fantasy. Reform’s obsession with protectionism, deregulation, and tax cuts for the ultra-rich isn’t a solution—it’s a recipe for long-term decline.
Securonomics offers a modern, globally competitive alternative. Rather than clinging to the past, it embraces the future, ensuring Britain doesn’t just survive in the 21st-century economy—it thrives.
A Vision Worth Backing
Rachel Reeves’ economic vision, built on Aghion’s principles of innovation, inclusion, and strategic competition, is the best path forward for Britain. It fosters dynamic growth without the excesses of cut-throat capitalism, ensures fairness without the stagnation of over-regulation, and embraces sustainability as the foundation of long-term prosperity.
If Britain is to regain its position as a world leader in innovation, industry, and growth, then it needs bold, intelligent economic thinking—not the tired slogans of economic nationalism. Securonomics is that vision, and it deserves our full support.
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