The UK’s longstanding current account deficit indicates that the UK economy has a fundamental problem of international competitiveness.

While in the past we have been able to support this through international borrowing, this is not sustainable in the long-term, particularly if Brexit leads to a weakening of the economy and its perceived attractiveness to overseas lenders and investors.

This discussion paper sets out four key propositions on the drivers of our current account imbalance, the ways in which it makes our economy vulnerable and hampers overall economic performance, and the actions needed to reduce it.