Funding the Future The UK is cursed
Nov 28, 2025
The UK faces dual economic curses: the resource curse and the finance curse, both stemming from choices made in the Thatcher era. The North Sea oil boom benefited a few, leading to industrial decline and an overvalued pound. Deregulation in 1986 favored speculative capital over manufacturing. With a centralized wealth in London, regional economies suffered. A call for public banks and a competitive pound is made to revitalize industry. The discussion emphasizes the need for an economy focused on democracy and fair work, breaking away from neoliberal policies.
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Two Curses Elevated Sterling
- The UK suffered both a resource curse from North Sea oil and a later finance curse that kept the pound overvalued.
- These combined choices destroyed UK industry and attracted hot money into speculative finance.
Thatcher Blew The Oil Windfall
- Margaret Thatcher chose to spend North Sea oil windfalls on neoliberal policies rather than industrial renewal or a sovereign wealth fund.
- She funded mass unemployment, tax cuts for the wealthy, and expanded the City of London instead of rebuilding industry.
Overvalued Pound Hurt Industry
- An overvalued pound made exports uncompetitive and raised the UK cost base, accelerating deindustrialisation.
- The City of London and hot money flows replaced manufacturing with financial claim exports since 2000.