AI could put ‘foundations’ of UK economy at risk, ex-minister warns
Artificial intelligence threatens to create “cracks in the very foundations” of the UK economy by displacing workers and placing immense pressure on the welfare state, a former government minister cautioned on Monday.
Darren Jones, who served as chief secretary to former Prime Minister Keir Starmer, argued that the government must “get ahead of the curve” as companies accelerate their adoption of new development is maintained, and businesses integrate it effectively, we could see cracks in the very foundations of the UK economy,” he wrote.
He further cautioned that a sharp decline in employment would result in a smaller tax base while simultaneously driving up the need for social safety nets. Jones questioned whether the existing welfare framework could adequately support individuals accustomed to high salaries and significant mortgage commitments should they find themselves out of work.
Furthermore, he questioned what the government’s offer to young people would be “if there simply are not enough jobs to go round.”
To address these concerns, Jones advocated for a broader reassessment of the UK’s social contract. Specifically, he proposed that the Office for Budget Responsibility incorporate the potential economic consequences of AI into its ten-year fiscal projections.
According to Jones, a reduction in tax revenue coupled with increased economic inactivity and higher welfare costs would be particularly difficult to manage while the government is already navigating what he termed a “fiscal tightrope.”
Originally reported by www.aa.com.tr. This article has been independently rewritten for republication.
