Abstract:

This is a Special report for the LSE Growth Commission, produced with the Centre for Economic Performance, that provides a set of actionable recommendations to the UK government to drive sustainable growth in the context of passenger vehicles. Subsequent reports in the series will cover other areas of the economy.

The race is on between economies to become cleaner, smarter and more efficient. For the United Kingdom to be competitive in this race, it first needs to understand where the transition to net-zero greenhouse gases brings opportunities to boost resource and labour productivity and the quality of jobs. Then it must orient policies, investment and regulation to seize these opportunities across the economy in order to stimulate sustainable and inclusive growth in the UK over the coming years. This report sets out the principles to guide these processes. It focuses on the goods and services related to passenger vehicles, identifying the multiple areas in which the UK could be competitive: opportunities lie in diverse goods and services across value chains and stages of innovation.