Happy New Year to all readers!

It may not completely wait for Godot. However, more than two years after the election of the British government with its flagship commitment to “improve” the country’s unreasonable regional inequality (next to Brexit), few flagship decisions can prove this.

Prime Minister Boris Johnson has been slow to include some of the most capable politicians in his party in the archives, and the Labour opposition has done the same before the release of the expected escalation white paper.However, that paper was postponed to the new year-to understand the ins and outs, please read New blog post Written by Gemma Tetlow of the Government Research Institute (and former FT colleague). Perhaps this document will surface at half of the maximum five-year term of the current parliament.

However, as we wait, ordinary readers will remember that regional inequality is one of Free Lunch’s favorite interests. So let us put forward some ideas at the beginning of this year, if someone asks me, I will contribute to the government.

It is certainly crucial to know what level should be raised: it is productivity. Regional inequality in productivity is the core issue; it is the cause of income inequality, and this inequality can only be partially resolved through redistribution. It also shows that there is a lot of waste-if backward areas can make up at least part of the productivity gap, they will get a lot of prosperity.

Productivity depends on many factors, including slow access to resources such as infrastructure and skilled labor. But it also depends on the production companies that choose to expand at this time and place, and companies usually turn to higher-productivity production practices.This is likely to be in a “High Pressure Economy”In this case, confidence in the growth of demand has caused companies to compete for labor and capital—the people who can use it most effectively are ready to win this competition. In a high-pressure economy, if any, upgrades will occur, so here are three measures to ensure one:

• Promote macroeconomic operations: Keep fiscal and monetary policies stimulating, as long as it needs to create prosperity in the backward parts of the economy and not just in the economic center.

• Make it easier for people to leave bad jobs, find better jobs or prepare themselves, so that labor can be smoothly redistributed from non-productive activities to more productive activities. This requires the establishment of an immediate support system for job seekers and replacement workers who have little or no savings to help them spend the time required for retraining or finding better jobs, so that tight family budgets will not trap people Dilemma.

• Strengthen investment incentives. Allow the full expenditure of the investment cost of the enterprise, and even make the “additional deduction”—you can deduct more than 100% of the investment expenditure from taxable income—permanent.

It is true that these policies have affected the entire national economy-although it is hoped that they will have a stronger positive impact on the underdeveloped regions. They need to be supplemented by local-targeted policies to directly solve the problem of insufficient regional productivity. There are two here:

Finally, productivity depends on capital invested in high-yield, high-risk companies. In fact, while areas with lagging productivity may bring returns to investors—because of the potential for catching up with growth—they also have risks. Their success depends on many things being done at the same time, from policies to attracting capital to the local entrepreneurial spirit not being frustrated.How do we make sure Does capital not flee from the left-behind areas but flow to the left-behind areas? Two thoughts:

• Solve the problem that the tax system is biased towards credit financing and make it treat equity like debt.In addition, the establishment of institutions to direct equity capital to backward areas-perhaps the local “intangible asset investment trust” as the 21st century Local community bank.

• Shift the capital tax to the net wealth tax, i.e. Reward more productive investment Better than profits tax. If people living in affluent areas hold large amounts of wealth disproportionately, then progressive net wealth taxes over time should ensure that private wealth is distributed more geographically. This will create a deeper local capital pool.

We will undoubtedly come back to this point when the white paper finally comes out, so stay tuned.

Other readability

• “Learning to coexist with the virus” does not mean acting as if a pandemic does not exist, I think My FT column this weekOn the contrary, it means preparing for the permanent existence of this virus or other viruses and planning ahead of time an emergency system that can be fast but shorter in duration.

• European Commission came up with In the new green finance taxonomy, both nuclear energy and natural gas can be labeled “green” to ensure the responsible disposal of nuclear waste under strict conditions, while natural gas is only a transition to zero-emission energy.The Green Parties in Germany and Austria are Fierce opposition Objections include nuclear; FT Leaders’ Column Proposals welcome There are some reservations.

• Don’t forget Russian President Vladimir Putin Has invaded Ukraine.

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