The Prosperity 2030 Alliance, a group of senior business figures chaired by NatWest chairman Rick Haythornthwaite and including the chairs of Diageo and National Grid, has warned that the UK economy is being held back by "five giants": neglect, gridlock, discouragement, myopia and powerlessness. The report, the first of five planned assessments, draws a parallel with the 1942 Beveridge Report's "giant evils" and argues that decades of weak growth mean younger generations can no longer expect a better life than their parents, unless politicians commit to long-term investment and planning.

The Alliance attributes "neglect" to insufficient private investment amid poor government choices, leaving Britain behind other G7 economies, while "myopia" reflects a lack of long-term policy thinking. "Gridlock" stems from excessive regulation burdening businesses, "discouragement" from a poorly designed, disincentive-laden tax system, and "powerlessness" from power being too concentrated in central government. The warning lands ahead of next month's Budget, the first under Prime Minister Andy Burnham, amid speculation of further tax rises to fund unfunded spending pledges, even as the economy posted unexpected 0.4% growth in July.