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Back to the 1950s

Several key industries have fallen back to production levels last seen in the 1950s. Car production has dropped to its 1952 level at around 700,000 vehicles a year—down by nearly 1 million in a decade—while steel is a shadow of its former output. Even cement is falling back, being increasingly switched to imports. Housebuilding is far below its 1950s’ and 1960s’ levels. The fertiliser industry has closed. Net zero technology is overwhelmingly imported (e.g. the batteries, solar panels, wind turbines, critical minerals and now EVs ), now mostly from China. Why? Deindustrialisation has multiple causes, exacerbated by the highest industrial electricity prices in the developed world. New digital technologies and data centres are highly energy‑intensive and need reliable, non-intermittent, round‑the‑clock electricity. The idea that we can simply become Singapore-on-Thames, relying on finance, law, tech, and hospitality, is at best naive. Traditional service sectors face rising costs from recent tax and wage policies, and global finance is becoming more fragmented and less open. Meanwhile, the UK continues to rely heavily on foreign investors to fund essential infrastructure, from water and energy to roads. The UK needs to focus on three big areas: competitive business taxes; affordable and globally competitive energy prices; and major investment in skills. Raising employers' national insurance, raising the minimum wage, increasing workers’ rights and signing ever-higher contracts for offshore wind leave what is left of UK industry reaching for the exit. Instead, we need a switch from business costs and taxes to consumers. It isn’t sustainable for voters to enjoy 21st‑century living standards with 1950s’ outputs. It will take a brave politician to tell the public some of these basic facts of life.