Theme parks are no cure for our economy

Not since Boris Johnson cited Peppa Pig World in a speech on climate change has a Prime Minister been so enthusiastic about a theme park. Sir Keir Starmer has announced a tie-up with Universal, the US company, to build an entertainment attraction near Bedford to open in 2031. The biggest of its kind in Europe, it would create an estimated 28,000 jobs and generate billions in revenues.

Given such encouraging forecasts it would be churlish to suggest that this feels emblematic of a nation in decline. With such seismic economic events taking place in the world, a theme park does not seem to be a serious response. It is also ironic, given the pressing need to build new homes in Britain, that the site was formerly one of the country’s largest brickworks. The UK consumes around 2.5 billion bricks a year and is now the world’s largest importer, adding to CO2 emissions.

This is a microcosm of the country’s dilemma. We import goods we once produced ourselves and have moved from being a manufacturing nation to one dependent on services for our prosperity. This leaves what is left of manufacturing especially vulnerable to the trading turmoil unleashed by Donald Trump’s tariffs. The president went ahead and imposed taxes above 100 per cent on Chinese imports after Beijing retaliated against Washington’s move with its own 84 per cent tariff.

With the US market effectively shut off, China will look elsewhere to dump its cheap goods, especially electric vehicles. The EU has already imposed tariffs on Chinese EVs to protect its manufacturers but Britain has not. Does the Government now do the same or risk a flood of Chinese goods looking to use the UK as a way into the EU market? That would lead to Europe putting tariffs on Britain despite a free trade deal.

A glut of cheap goods would be good for consumers in the short term but harmful for British businesses in the long run, especially car companies as they struggle to remain competitive. The Government has so far resisted any retaliation against the US and Ministers say they are hopeful of a trade deal with America. But Washington would presumably expect the UK also to erect similar tariffs on other countries to those they have applied.

Lisa Nandy, the Culture Secretary, hailed the proposed Universal theme park as a “landmark investment” for the economy. While welcome there are far bigger issues with which the Government must grapple.