Aberystwyth University’s latest research, published in the UK’s flagship academic forum The Conversation, argues that the traditional GDP‑centric focus of the UK economy is no longer fit for purpose. The paper calls for a strategic shift toward a “new economics” that places wellbeing, justice and ecological resilience at the heart of policy design.
Why the Current Growth Narrative is Insufficient
For decades the UK budget has been framed around forecasts of economic growth, borrowing levels and fiscal discipline. Recent data show that growth has slowed, while living costs and inequality climb. Climate change continues to undermine food security, displaces communities and pushes the country toward tipping points. The new research describes these interconnected crises as the “polycrisis” – the overlap of climate change, biodiversity loss, energy insecurity, food scarcity and increasing inequality.
Conventional economics places the individual as a rational maximiser and assumes markets allocate resources efficiently. It further views GDP growth as the surest path to progress. Yet growth has historically come with higher inequality, precarious work, environmental degradation and can be difficult to sustain on a planet with limited resources.
The Ten Principles of a New Economics
Drawing on a comprehensive literature review of 38 schools of thought, the paper outlines ten cross‑cutting principles that can guide policy decisions. These principles have already influenced experimental legislation in Wales, Amsterdam and other jurisdictions.
1. Prioritise Wellbeing for People and Planet
Economies should serve society and ecosystems, not the other way around. This means embedding measures of human well‑being and ecological health into policy metrics, and ensuring that growth metrics no longer dominate.
2. Embrace Systemic Complexity
Economic outcomes are shaped by ecological, sociological, philosophical and indigenous knowledge systems. Cross‑disciplinary research can reveal hidden interdependencies that a purely quantitative model would miss.
3. Recognise Limits to Growth
Finite planetary resources cap the amount of extraction and consumption that can be sustained. Policymakers must acknowledge that endless GDP expansion is impossible on a finite planet.
4. Treat Nature as Irreplaceable Capital
Soil, forests, water and biodiversity cannot be substituted by human‑made infrastructure. Policies should protect natural stocks and compensate for any unavoidable loss.
5. Design for Regeneration
Systems should be circular – materials and resources should be reused or bio‑degraded rather than extracted relentlessly. This supports resilience and long‑term viability.
6. Adopt Holistic Views of People and Values
People are not just self‑interested consumers; they seek dignity, opportunity and community. Economic frameworks must accommodate a wide range of lived experiences and values.
7. Make Equity and Justice Core Goals
Reducing inequality should be a central policy aim, not an afterthought. That means targeted investment in under‑served regions, progressive taxation and inclusive labour markets.
8. Promote Relationality
Trust, reciprocity and community are foundations of a healthy economy. Policies should strengthen social capital and nurture mutual relationships.
9. Encourage Participation and Cooperation
Citizens, businesses and governments should collaborate through open forums, citizen assemblies and stakeholder dialogues, rather than adopting decisions top‑down.
10. Consider Post‑Capitalist and Decolonised Models
Alternative economic models – such as shared ownership, commons‑based economies or community enterprises – must be explored to move beyond relentless accumulation of wealth.
Real‑World Experiments That Translate Theory into Practice
- Welsh Wellbeing Act: Mandates Welsh public bodies to meet seven well‑being goals, including prosperity, resilience and equality.
- Amsterdam’s Doughnut Economy: Balances human needs with planetary limits, guiding urban planning, housing and waste policies.
- Wellbeing Economy Governments: Connects countries pursuing post‑growth strategies such as Costa Rica’s ecosystem‑based development, Bhutan’s Gross National Happiness and New Zealand’s Living Standards Framework.
These initiatives demonstrate that integrating the ten principles into legal, fiscal and planning frameworks is both feasible and beneficial. They serve as blueprints for the UK’s next fiscal strategy.
Policy Implications for the UK Budget
Chancellor Rachel Reeves could incorporate these principles by embedding wellbeing, justice and sustainability in the budget narrative and earmarking funds for nature restoration, circular manufacturing and community‑level projects. Infrastructure investments would be guided not only by cost–benefit analysis but also by environmental thresholds and social impact metrics.
By widening the definition of “fiscal responsibility” to include long‑term ecological and social costs, the UK can maintain economic stability while addressing the urgent challenges of climate change and inequality.
Actionable Steps for Stakeholders
1. Students: Explore courses that integrate environmental economics, social justice and sustainability. Apply to Aberystwyth University’s Master’s in Sustainable Development Management to gain practical skills.
2. Policymakers: Adopt a new economics framework in local government budgets; publish a wellbeing indicator alongside GDP; establish citizen advisory boards.
3. Businesses: Transition to circular supply chains; integrate ESG metrics into board reporting; invest in local community projects.
Conclusion: A Call for Collective Realignment
The UK’s future depends on how effectively it can shift from growth for growth’s sake to a system that values people, fairness and the planet. Aberystwyth University’s research urges all actors – from students to policymakers – to embrace the ten principles that can guide us toward an economy resilient to climate shocks and social disparities.
It is not a luxury; it is a necessity. By adopting a new economics paradigm, the UK can secure a stable, fair and sustainable future for all citizens.
Take the next step: Submit your application to Aberystwyth University’s Master’s in Sustainable Development Management today.
Want to learn more about how the UK budget could incorporate wellbeing metrics? Read the full report from The Conversation.
Share your thoughts on a new economics approach in the comments below – your voice can help shape the next generation of economic policy.
