British ‘baby shortage’ could lead to economic decline

British ‘baby shortage’ could lead to economic decline, says thinktank.

According to experts there is an impending baby shortage in the UK, which could eventually cause “long-term economic stagnation”.

The Social Market Foundation (SMF) highlighted how birth rates are falling. At the same time the number of people heading into retirement is increasing.

The foundation believe that ministers need to come up with a task force to look into these issues. One possible measure that could help is improved childcare.

Chief economist at the SMF, Dr Aveek Bhattacharya said: “The question of whether the government should intervene to try to increase the birthrate is clearly a sensitive topic that must be delicately handled.

“However, given the alarming fall in fertility rates, and the risks that population ageing poses to our social and economic wellbeing, it is a discussion we should not duck.”

According to a report by the SMF: “At present, there are a little under three over-65s for every 10 workers, but by the middle of the next decade that ratio will rise to 3.5, and by the 2060s the number will be closing in on four,”

“According to these projections, by 2050 a quarter of Britons will be over 65, up from a fifth today.

“This combination of a lower share of the population in work and a higher share in need of economic support clearly has a negative effect on the productive capacity of the economy.”

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