Deficit reduction is important, but it’s not the end of the story: if we are to achieve real long term growth, government must come up with creative solutions to overcome the institutional and productive constraints on the economy

An obsession with deficit reduction has diverted attention away from the need to revamp the UK’s industrial base. Steve Coulter argues that the coalition government has belatedly turned its attention towards industrial policy with its ‘growth review’; but there is little sign so far of effective and novel policies. Tomorrow’s Autumn Statement will flag up lower growth and higher borrowing – what it also needed is action to indicate a way out of the UK economy’s malaise.