Escaping The State We’re In
Strangers’ Dining Room, House of Commons
18.30 to 20.30, Thursday 19 March 2026
The Fairness Foundation and the Policy Institute at King’s College London hosted the launch of Escaping the State We’re In at a reception in the Houses of Parliament.
The report, written by celebrated political economist, commentator and author Will Hutton, comes thirty years after the publication of Will’s seminal work The State We're In (the best-selling economics book since the second world war). It sets out the changes needed to Britain's politics and economy to build a more successful, fair and confident country, arguing that bolder action is needed to support great value-generating companies and repair Britain’s frayed social contract. Will makes the case for an approach to economic growth that rewards genuine entrepreneurship and innovation while tackling disabling levels of inequality and boosting the capacity of the state to achieve these twin fundamental aims.
The launch event brought together five speakers to interrogate that proposition, explore the state of Britain’s political economy, and consider how the country might rediscover a sense of direction and possibility.
Will Hutton opened the evening by acknowledging the shadow cast by current geopolitical instability. “I’m keenly aware that the Iran war may last rather longer than President Trump expects,” he warned, noting that the conflict is likely to become “an energy war as much as a military war.” That environment, he argued, sharpens the stakes of the economic debate. Questions about Britain’s “productive capacities, national resilience, [and] defence capabilities” are immediate and unavoidable.
These problems beset an already fragile economy that is marked by levels of wealth inequality not seen since the 19th century. There has also been an enormous shift in the pace and breadth of technological innovation, the fourth industrial revolution that spans photonics, robotics, artificial intelligence, digitisation and life sciences. But this revolution has been complicated by the increasing “privatisation of capitalism”: the growing share of economic activity taking place in private markets, private equity, private credit, private infrastructure, family offices. These structures can drive innovation, but they also risk “monopoly… unaccountability… dense concentrations of wealth… [and] a new precariat.”
However, far from languishing in despair, Will used the occasion to make a powerful argument about a fairer economy and country, built on the inarguable strengths of Britian today. Britain is, in his words, “astonishingly entrepreneurial,” ranking third globally for innovation and first in Europe in a critical mass of frontier-tech companies. We possess at least 800 venture-backed high-tech scale-ups with turnover in excess of $25m. These firms represent the seeds of a future economy, even if Britain has so far failed to convert this entrepreneurial energy into durable national prosperity. The UK should be “five, six, seven times more ambitious” if it is serious about building the tech economy. Will quoted the economist Philippe Aghion: “capitalism is a spirited horse; it takes off readily, escaping control, but if we hold its reins firmly, it goes where we wish.”
That these businesses need government ambition to match their potential was a point reinforced at the event by Ravi Gurumurthy, CEO of Nesta, who offered several powerful examples of how the state can play an active role in shaping the rails on which capitalism runs in order to meet the “need to push forward the frontier of innovation with these 800 firms and do whatever it takes to unblock the barriers to growth”. Ravi pointed to the example of India’s digital ID programme, which now covers 1.4 billion people and underpins a payments system through which more transactions flow than the whole of the global Visa network. Ravi also encouraged more confidence about Britain’s own achievements, pointing to the energy transition as an example. He noted that in 2010, only 20% of the electricity system was decarbonised; today the figure is around 65%, a product of strategic policy, public investment and clear direction. His conclusion was clear: “The state can set a direction… it can solve these coordination problems, but it has to be quite active in driving competition as well.”
Similarly, Michelle Ostermann, Chair of the International Centre for Pension Management, encouraged the UK to look at international best practice when thinking about how to use the lever of pension reform to boost growth - a topic explored at length in Will’s report. Britain’s pension ecosystem, she argued, is not yet designed to generate the “patient,” capable capital needed to support productive investment at scale, but other countries, such as Canada, Australia and the Netherlands, show what is possible. Michelle cited OECD evidence that the difference between successful and failing pension systems is design, that “it’s not just about piling in more money; we need institutions properly equipped to create wealth at scale.”
Julian Richer, founder of Richer Sounds and of the Fairness Foundation, echoed Will’s central argument that if the reins of capitalism are gripped tightly, it can deliver growth that can benefit society as well as the economy. Julian encouraged a greater understanding of “double-edged capitalism” and of the distinction between ‘good’ and ‘bad’ business, and made the case for government action to distinguish between them. He framed this as both a moral and an economic issue: capitalism requires standards. Businesses should be accepted and respected only if they behave responsibly, paying taxes, paying fair wages, avoiding exploitative contracts — and bad businesses should be vilified.
Bobby Duffy, Director of the Policy Institute at King’s College London, framed these contributions within the narrative frame of fairness, highlighting the “sense of unfairness across generations” and the “loss of sense of a possible brighter future” as central to Britain’s political malaise. Bobby argued that what is often described as a “young people’s issue” is a whole‑of-society issue, because most people live in webs of intergenerational connection. When progress stalls, the social fabric frays, and “populist and authoritarian appeals and cultural division thrive.” He argued for fairness not as an add-on to an economic strategy, but as the precondition for its success.
Thursday’s event made clear that a stronger economy and a healthier society is within reach, if the UK is willing to be more strategic and more confident about shaping the economy rather than merely observing it. The prize is a fairer and richer country, more at ease with itself and proud of its place in the world. Closing his contribution, Will Hutton ended the evening with a call to agency and ambition. “It’s in our hands,” he said, “to build a 21st‑century economy… to build a much more solidaristic society… to reinvent our public realm. It’s achievable. It’s feasible. Let’s do it.”
OTHER SUPPORTIVE QUOTES
Rain Newton-Smith, Chief Executive of the CBI:
“A relentless focus on investment and measures to promote competition will pay dividends for our growth, productivity and prosperity. Escaping the state we’re in will require bold ideas which nurture our world-leading universities and ignite the innovation which stems from them, from quantum start-ups to clean energy scale-ups. From tax simplification to innovation in public procurement, Will Hutton sets out ideas to challenge our thinking and unlock the business dynamism needed to deliver sustainable growth.”
Andy Haldane, President of the British Chambers of Commerce and former chief economist of the Bank of England:
“It is only by enhancing business dynamism, in particular among its flourishing scale-up companies, that the UK can break free of its growth malaise. This compelling report provides some practical steps for doing so”
Lord Neil Kinnock, former leader of the Labour party:
“Yet again, Will Hutton offers urgent, practical ways to connect Britain’s financial capabilities and fresh productive potential to advance economic strength and social resilience”.