Barely more than a quarter of British adults think cutting welfare payments to encourage people back into work would be more effective in growing the economy than better trade terms with the EU.
The YouGov poll commissioned by Best for Britain found that 46% of respondents think a new trade deal with the UK’s largest market is a better way to grow the economy, thereby boosting public finances, compared to 28% who think cutting benefits is the way to go.
Notably, closer trade links with the EU is even more popular among the voters who swept Labour to power at last year’s election, with around two thirds (65%) thinking it would pay greater economic dividends, more than four times as many Labour voters who opted for benefit cuts (15%).
The government is facing intense criticism and a potential rebellion of backbench MPs over proposals to cut public spending by reducing payments for people with debilitating health conditions as a way to coax them into employment. The move follows their announcement last month that spending on international development will also be slashed.
However, with reports suggesting the OBR will half its projections for UK economic growth next week, recent independent research by Frontier Economics commissioned by Best for Britain suggests that the government can boost the UK economy by as much as 2.2% through closer alignment with the EU, with the strongest growth projected in the Midlands and North of England.
The potential growth would be 20 times larger than the combined effect of the post-Brexit trade deals signed with Australia and New Zealand, which are together expected to deliver a mere 0.1% over the next ten years, and double the last government’s best estimates from any UK-US trade deal. Frontier’s analysis suggests the resulting windfall for the Treasury would be enough to fund close to two years of the government’s desired increases to the NHS capital budget.
In May, the UK will host EU leaders for the most important negotiations in the EU-UK relationship reset to date. Voters are calling on the government to use this opportunity to agree a new common sense deal with the EU to boost the UK economy and lower costs for consumers.
Naomi Smith, Chief Executive of Best for Britain, said:
“Austerity is political anthrax, being deeply unpopular, economically shortsighted and devastating to hundreds of thousands of vulnerable people all at once - but fortunately for Starmer, there is a popular alternative.
“By protecting high British standards and striking a common sense deal with our largest market, the Government can deliver real growth right across the country, boost public finances and reduce prices for consumers.”