LONDON — November 13, 2025 — As the United Kingdom prepares for its 2025 budget, economists are calling for a fundamental shift away from growth-driven policy toward a “new economics” framework focused on wellbeing, justice, and sustainability.
Professor Jasper Kenter of Aberystwyth University says traditional models centered on GDP growth can no longer address the nation’s overlapping crises of climate change, inequality, and ecological decline. His team’s research proposes ten guiding principles for a fairer, more resilient economic future.
Growth Alone No Longer Measures National Progress
According to Kenter’s study, conventional economics assumes that individuals act as “rational maximizers” seeking self-interest and that markets allocate resources efficiently. However, these assumptions, he argues, are increasingly detached from social and environmental realities.
“GDP growth has too often come with rising inequality, job insecurity, and environmental degradation,” Kenter said. “A new approach must prioritize human and planetary wellbeing over short-term expansion.”
The report describes the global “polycrisis” — overlapping threats from climate instability, biodiversity loss, food insecurity, and energy shocks — as evidence that the current growth paradigm is unsustainable.
Ten Principles Define The ‘New Economics’
The “new economics” framework draws insights from more than 38 schools of thought, combining lessons from ecological, feminist, and behavioral economics. It outlines ten principles that aim to reframe policymaking around wellbeing and justice:
- Wellbeing for people and planet
- Recognition of complexity and interdependence
- Limits to growth on a finite planet
- Nature as irreplaceable capital
- Regenerative and circular systems
- Holistic understanding of human values
- Equity and social justice
- Trust, reciprocity, and community cohesion
- Citizen participation in policymaking
- Openness to post-capitalist and decolonized models
“These principles show that economics is not just about profit or productivity,” Kenter said. “It’s about building systems that sustain life, dignity, and fairness.”
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Lessons From Wales And Global Examples
The report highlights examples where new economic principles have already influenced policy. Wales’ Wellbeing of Future Generations Act requires public bodies to pursue prosperity, equality, and global responsibility beyond GDP targets.
Cities such as Amsterdam have adopted “doughnut economics”, balancing human needs with environmental boundaries through sustainable housing, food waste reduction, and renewable energy use.
Globally, nations like Costa Rica, Bhutan, and New Zealand are testing frameworks that prioritize happiness, social health, and environmental protection.
Budget 2025 Seen As Opportunity For Change
As Chancellor Rachel Reeves prepares the upcoming budget, experts say it is a chance to embed wellbeing and sustainability into national accounting. The initiative, they argue, would mark a break from decades of growth-centric policymaking.
“This is not about abandoning fiscal discipline,” said Dr. Marina Patel, policy fellow at the London School of Economics. “It’s about redefining responsibility to include sustainability, fairness, and resilience alongside balance sheets.”
Integrating Wellbeing Into Economic Strategy
The research suggests the government could integrate wellbeing indicators into infrastructure planning, investment priorities, and fiscal policy. Spending could focus on projects that restore ecosystems, reduce inequality, and build community resilience.
“Transforming the economy means putting wellbeing and justice at the center of every decision,” Kenter emphasized. “That includes measuring success not by GDP, but by how effectively policies help people thrive within planetary limits.”
A Call To Rethink Economic Values
Supporters of the movement argue that crises — from the pandemic to energy shocks — have proven that governments can act swiftly when values shift. The “new economics” model calls for participatory governance, transparency, and citizen assemblies to guide reforms.
Kenter concluded, “Economics is not neutral. It’s a set of choices about the future we want. The UK can either cling to a failing system or pioneer one built on wellbeing, fairness, and ecological balance.”
