However, there is a growing consensus that austerity has failed economically, fiscally and socially. Instead, as a society, we must use this moment to create a more fundamental shift away from the ‘consolidation state’ towards an ‘investment state’. To do this, the state must have a bigger role – and must invest more – in four ‘social deficits’.

Care , focused on the young and the old.

, focused on the young and the old. Skills , addressing low pay and productivity.

, addressing low pay and productivity. Health , in particular inequalities and rising mental ill-health.

, in particular inequalities and rising mental ill-health. Security, to end poverty, growing levels of debt and economic insecurity.

We argue that to achieve this, policy makers will have to make two key shifts in policy.