Inventing our future Collective action for a sustainable economy

Where are we now?
Long-term trends and
strategic challenges
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Just as the population is changing, so too are the factors that impact on
people’s well-being and productivity. The central importance of the
health status of the population to productivity is increasingly recognised,
as are the economic and social costs of poor health. Health contributes to
economic outcomes through four main channels: higher productivity,
higher labour supply, improved skills as a result of increased participation
in education and training and increased savings for investment in physical
and intellectual capital (as opposed to healthcare).
The CBI estimates that sickness absences represent an annual cost in the
UK of £11.6 billion of lost productivity, whilst Layard has estimated that
poor mental health alone costs £13 billion in lost output, before
considering the wider £10 billion of costs to the Exchequer from related
incapacity benefits. 180,000 people in the East of England are receiving
sickness and disability-related out of work benefits. Central to efforts to
raise productivity growth in the region must be to improve healthy years
of life and tackle major determinants of health status, such as education,
employment status and income inequalities.
Access to quality employment is seen as one of the principal determinants
of an individual’s well-being. Adults spend a high proportion of their lives
at work and depend on the workplace for income, friendships and social
networks and fulfilment. Employers therefore have a major role to play in
the health of the workforce through workplace organisation and job design.
The health system in the region also makes a major, direct contribution to
the economy. The NHS in the East of England spends in excess of £7 billion
per annum and is the region’s largest employer. This offers huge potential
to stimulate innovation, source locally, improve skills and deliver climate
change mitigation and resource-use ambitions.
Infrastructure for a competitive and sustainable economy
The private sector consistently identifies transport infrastructure deficits
and housing affordability as key constraints to its competitiveness. The
East of England has low population densities combined with long-distance
commuting, resulting in a higher rate of travel per head than in any other
region. Currently, 75 per cent of trips to work by the region’s residents are
made by car. The region suffers further from congestion in urban areas
and on the strategic road network and overcrowding on rail routes to
London. Road and rail access to ports and airports does not adequately
support the development of their future capacity, nor enable a greater
proportion of goods and people to be moved by rail, which is important in
reducing the environmental impacts of growth.
The continued attraction of the East of England and the Greater South
East to mobile businesses and talented people will be determined in large
part by our ability to keep pace with the investment in, and effectiveness
of, the transport system of our competitors.