20 Jan 2026Despite falling behind its peers, the UK economy could be on the brink of a turnaround so the government must up rather than run-down its growth strategy, says the Resolution Foundation. A report by the think tank warns that the UK's poor post-financial crisis economic performance has continued well into the 2020s. Its GDP per head is now languishing 15% behind its former peers, including France, Germany and Canada. There are signs that the UK economy may be turning a corner however, with productivity growing by 3.4% over the past 18 months. The report says the government's three-pronged strategy of restoring stability, increasing investment and reforming the economy is the right one for the challenges Britain faces. Greg Thwaites, Research Director at the Resolution Foundation, said: 'There's lots to welcome in the government's economic growth strategy. But it has spent much of the past 18 months undermining that strategy with policy U-turns, kite-flying tax ideas and timidity in areas like trade where it needs to be bold. 'With signs that productivity may be turning a corner, the government must capitalise by ramping up its plans. It should redouble efforts to unblock housebuilding in major cities, focus job support for young and older workers, and decide whether to bite the bullet and reverse some of the damage from Brexit.'