Why it’s crucial that the UK transitions to a Doughnut Economics Model Now!

Let’s talk about Doughnut Economics. 

Let’s set the scene – it’s 2024 in the UK. Growth has been consistently poor since the financial crash of 2008. Projections from the new govt are looking bleak, with a peak of 2% growth in the next 4 years, if we’re lucky. The gap between rich and poor has returned to victorian levels in the last 14 years. We’ve lost over 80% of our biodiversity in the last 40 years.

The UK is facing a serious reality check. Between widening income gaps, soaring living costs, and an escalating climate crisis, it’s clear that the traditional focus on endless GDP growth just isn’t cutting it anymore. If we’re going to build a future that’s genuinely fair, resilient, and eco-friendly, it’s time to ditch outdated economic models and adopt something bold and fresh—something like Doughnut Economics.

Originally created by Kate Raworth, the doughnut model is all about creating a world where we meet everyone’s needs without pushing our planet to breaking point. Sounds sensible to me! That’s why we believe passionately that the UK needs to jump on board with this economic model of the future, now, and reimagine our approach to progress and prosperity.

So, what is Doughnut Economics?

At its core, Doughnut Economics is a reimagining of success. Imagine a doughnut (yes, really!). The inner ring of this doughnut represents the essentials for a decent life—things like food, healthcare, education, and social equity. Falling short here means people are struggling, unable to meet basic needs. The outer ring represents the planet’s ecological limits, things like a stable climate, clean air, and thriving ecosystems. Cross this boundary, and we’re in trouble—think pollution, biodiversity loss, and climate instability. The “safe and just space” for humanity is in that doughnut’s sweet spot, where everyone’s needs are met without overwhelming the planet.

What I love about this model is that it flips the focus. Instead of obsessing over GDP as the only marker of success, it urges us to look at how well we’re doing on both social and environmental fronts. We can’t just be here here just to grow an economy endlessly but to create a society where people and nature can thrive together.

Why Doughnut Economics Is Perfect for the UK Right Now

Look around—there’s so much we need to fix. The housing crisis is spiralling, health inequality is worsening, and extreme weather events, just like we’ve seen in Valencia recently, are becoming more common.

The UK is hitting both social and environmental walls, and the neoliberal economic mindset we’ve inherited from the 1980s just isn’t offering us solutions to today’s problems. Doughnut Economics, on the other hand, meets our economic and social challenges head-on by rethinking how we measure success, distribute resources, and make environmental sustainability a top priority.

Here’s how Doughnut Economics could seriously benefit the UK:

Tackling Inequality
Right now, the gap between rich and poor is getting wider every year. Not only this, but with an ageing population and a declining birth rate, the gap is only going to worsen. Doughnut Economics is about making sure everyone has access to basic life essentials. Imagine if our economy was designed to close the gap, making things like affordable housing, healthcare, and education non-negotiable. This approach would empower communities and create a more level playing field for everyone.

Respecting Environmental Limits
We all know the UK needs to cut its carbon emissions and protect its natural resources. Doughnut Economics gives us a roadmap to do this responsibly. The model’s “ecological ceiling” helps us understand what’s sustainable, guiding us to live within our means by embracing renewable energy, sustainable agriculture, and a circular economy. We can make sustainability and regenerative practices the norm, not the exception.

How the UK Could Bring Doughnut Economics to Life

Switching to Doughnut Economics isn’t about quick fixes. It’s about reshaping systems at every level, from government policies to how we run our businesses. Here’s where we can start:

• Redefining Progress and Success
  Success needs to mean more than a booming GDP. The government could shift focus to include new metrics—like community health, happiness, and environmental resilience. Using the doughnut model we could create a national dashboard that highlights things that really matter to people and the planet, not just economic growth rates.
• Investing in Green Infrastructure
  If we want a future-proof economy, green investment is the way forward. We have to prioritise renewable energy, sustainable transport, and energy-efficient buildings. Not only does this tackle carbon emissions, but it also creates jobs in emerging industries that will help the UK lead the green transition. We’ll be hosting Green Finance UK on 5th February 2025 to talk all about green investments, find out more here.
• Building a Strong Social Foundation
  Access to quality healthcare, affordable housing, and decent wages shouldn’t be luxuries—they’re basics. By ensuring everyone has a stable foundation, we can create a healthier, more resilient society. That means fair taxes, targeted social programmes, and smart policies that close the gaps in health and wealth.
• Empowering Local Communities
  Doughnut Economics isn’t just a top-down approach. Local governments and communities can bring this model to life through initiatives that make neighbourhoods greener, more inclusive, and supportive. Our regions across the UK can lead the way, fostering local food systems, accessible green spaces, and community programs that empower people to live sustainably. We believe deeply in the power of our regions to build a national net zero future, and we’ll be talking all about this, where Doughnut Economics will be a key topic, at Re:Generation Earth.
• Educating and Engaging – Creating the Workforce of the Future
  For this shift to work, we need the general public to be on board. That involves educating people about the opportunities in the green economy, about why Doughnut Economics matters and about how we can build a successful and prosperous future for this country. Right now, school programmes, business initiatives, and media campaigns are being developed that shape the next generation – let’s put Doughnut Economics at the heart of these campaigns so people become excited about a future where sustainability and equality go hand-in-hand. When everyone understands the stakes – and the benefits – they’re more likely to support and engage with meaningful change. We’ll be talking all about the skills of the future at Green Skills UK Conference on 13th February 2025. Find out more here. 

The Path Forward: Creating a Thriving UK Within Our Planet’s Boundaries

Doughnut Economics is not just a concept; it’s a well thought out pathway to a truly sustainable and thriving society. In a world facing climate chaos and deepening inequality, the UK has the opportunity to redefine what a strong economy looks like. By adopting this model, we can prioritise both people and the planet, moving towards a future that is fair, resilient, and full of opportunity for everyone.

This shift won’t be easy, but it’s worth it. Let’s start building an economy that cares about the well-being of people and respects the planet’s limits.