To enable sustainable growth, we need a clear understanding of our economy, both on a granular and a big-picture basis. Recognising our strengths and weaknesses is non-negotiable. Since the last election, our nominal economy has grown by 28%; a win worth noting, but inflation, which has outpaced the UK’s, has eroded it almost entirely. Future economic growth must align with the innovation of our value proposition, enhancing our administrative model through growth in our advisory services, supported by digital frameworks, better travel links and improved communications.
We should not rely solely on increasing our workforce to boost our economy. Since 2020, our population has increased by 1,700 people, or 3% of the total, our fastest growth in modern history. With housing development lagging, property prices have soared by 27%, and rents have risen by 24%. Decisive action is urgent: boost housing, tame inflation, and spread prosperity.
Housing availability must be a core priority in the new term. It is especially important to our younger population. The island must foster a vibrant local ecosystem that encourages young people to stay, succeed and grow, creating initiatives like apprenticeships in emerging industries and incentives for young entrepreneurs who wish to live here and participate. We must, therefore, develop purpose-built housing for our young and their families. We must develop properties, change the use of ageing office and retail space for residential units and look for effective pragmatism in our planning regulations.
Travel links are critical to an island. They must serve industry, our community, and tourism. As a government, we must decide whether travel must be operated commercially or as an economic enabler. Understanding the difference is key to unlocking growth. My view is that connectivity is an enabler for our economy and we must aim for the best air and sea links, and help them flourish.