Brits will be £25,000 poorer by 2040, according to Truss-backed economist.

Asked by reporters if her own economic approach was right, she replied, «It's a long game.» Credit: Leon Neal/Getty Images Europe

The British will be £25,000 poorer by the 2040s if growth continues, says economist backed by Liz Truss.

Speaking at an event to celebrate At the launch of the Commission's former prime minister's growth program, its chairman, Douglas McWilliams, said that the purchasing power of each individual would be lower if the country could not return to the rate of growth seen in the 1960s.

Tyler Cowen, an American economist, said that the standard of living in Poland could exceed that of the UK in a decade if drastic measures were not taken.

Ms Truss attended the event in central London but did not speak . Asked by reporters if her own economic approach was right, she replied: «It's a long game.» it has not disappeared dramatically, but it is getting worse and worse.”

The event was also attended by former cabinet ministers Dama Priti Patel, Ranil Jayewardena and Lord Frost.

Development Commission launch event on Wednesday. Credit: Leon Neal/Getty Images

Mr McWilliams said everyone in the UK will be much poorer in 2040 if post-pandemic growth cannot be brought back to 1960s levels.

« If you compare different growth rates up to 2040, the difference between the growth rate we had in the 1960s and the trend of the Covid period is a 65 percent difference in living standards by 2024. he said.

“And that amounts to almost £25,000 a year per person with a difference in purchasing power. Just think what we could do if we had an extra £25,000. That's the difference between success and failure and that's why it's so important that we succeed.»

He also said that compared to the US, the average Brit could spend less than £10,000 due to slower growth in recent decades.

Mr Cowan said: “Don't miss this opportunity. – the stakes are incredibly high. I am very optimistic, but to be precise, I would like to say that we really need to focus on economic growth.”

Mr McWilliams said that sluggish growth is not unique to the UK, but to the widespread problem in the G7 countries, but added that the UK, in particular, did not appear to have regained its “mojo” in the post-COVID years.

The Commission has proposed a “permanent” growth rate of three people per capita. cents could be achieved by 2040, but did not provide policy guidance on how that figure could be reached.

The company said its initial work focused on identifying the problem of low growth and its goal is to pursue further analysis. before and after major financial events to find out how a struggling economy can be transformed.

The launch comes shortly after Chancellor Jeremy Hunt said he was prioritizing fighting inflation.