The Rest Is Money 246. Why we need more businesses to go bust
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Jan 27, 2026 Ruth Curtice, Chief Executive of the Resolution Foundation and former Treasury official, explains why UK growth has lagged and what must change. She discusses low investment, the benefits of business turnover and rising insolvencies, the need to channel capital to younger firms, and policy moves on trade, housing and labour that could lift productivity.
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Zombie Apocalypse Signals Necessary Restructuring
- Rising interest rates and cost pressures are causing more firm failures — a 'zombie apocalypse'.
- That destruction must be matched by new firm creation or unemployment will rise, warns Ruth Curtice.
Public Investment Lacks Productivity Focus
- Public capital spending is steady but not focused on the highest productivity areas like transport, housing and R&D.
- Defence and energy rises have crowded out other productivity-enhancing projects.
Stabilise Policy To Unlock Private Investment
- Reduce policy uncertainty because high uncertainty deters private investment, Curtice argues.
- Commit to clear, stable plans to restore business confidence and attract investment.