I read this linkedin post which by itself is a summary of other data ( https://www.linkedin.com/pulse/quality-street-dictators-choice-budget-cartas-treasure-stephen-wilks-e7rie/)
Here are a couple of charts which could help understand the slippery slope the UK is on
UK welfare spending is almost 11% of GDP which is more than the Income tax receipts of 10.5% . It is also projected to grow by 30% in the next 6 years. Who will fund this? Labour has already raised 70/80 billion pounds in the last two budgets and there is no further leverage available. High networth individuals have already started moving out and eventually skilled migration will follow
UK’s current economic model is fragile, overly dependent on financial markets, and constrained by persistent structural weaknesses. The UK is seen as a low-investment, low-productivity, and high-inequality growth model, with policy still biased towards asset owners and the City of London resulting in weak growth, stagnant to declining real wages for many households, and high regional disparities, especially between London and the rest of the country. Brexit has definitely contributed to the decline and now has resulted in the resurgence of Reform and marginalization of the Conservative party.
Historical GDP reconstructions (for example by Angus Maddison) suggest Britain’s share of world output was only a few percent around 1700, far below India and China, each of which likely accounted for around a quarter or more of global GDP at that time. In terms of rough “ranking”, this places Britain somewhere in the second tier globally in 1700—significant but not yet a clear top‑three world economy until later in the 18th and especially 19th centuries, when industrialisation and empire massively expanded its share ( source Wikipedia)
The UK has already slipped to the 6th place in rankings and it will be a matter of time when it drops out of the top 10 (maybe in 2030's if they can't fix welfare spending)
What is intriguing is the pound still holds strong compared to the Indian ₹? Cannot quite figure that out.
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