Summary

The British economy is increasingly characterised by a form of ‘command capitalism’ in which the private sector is compelled by law to advance the political goals of the government. Targets, regulation and taxation are used by the state to encourage firms to pursue non-economic goals such as net zero, ‘diversity’, egalitarianism and behavioural change.

The capitalist command economy is neither socialist nor neoliberal. The government does not seek to nationalise industries and run them itself. Instead, it subjects private companies to so much political interference, including price controls and quotas, that they become de facto agents of the state.

The capitalist command economy gives politicians power without responsibility. The government sets out its ambitions and tasks the private sector with delivery, but a system that puts non-economic goals above productivity and forces firms to focus on issues that are not related to their business is unlikely to deliver economic growth.