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The Office for Budget Responsibility warns that ever higher taxes will discourage work, while advances in artificial intelligence could remove millions of jobs over the coming decades.

The discussion is framed as a crisis. How will governments pay for everything if fewer people are in paid employment?

From a localist perspective, this may be asking the wrong question.

The industrial economy has taught us to believe that people only become economically useful when they are employed by someone else and paid through the national money system. Anyone outside that system is seen as a cost, supported by taxes collected from those who remain in work.

Yet throughout history this has been the exception rather than the rule.

For thousands of years people created wealth directly within their own localities. They grew food, repaired buildings, made tools, cared for one another, passed on skills and maintained the landscape. Much of this work never appeared in government statistics, yet it sustained society.

Today millions of unemployed, retired and underemployed people possess experience, practical ability and local knowledge. The present economic system largely ignores this resource because it values only paid employment.

Localism sees something entirely different.

These people are not an economic problem. They are the seed from which a new local economy can grow.

Given access to land, workshops, woodland, community buildings and local markets, they could help produce food, repair household goods, restore neglected buildings, manage local woodlands, teach traditional skills, care for neighbours and create countless small enterprises that reduce dependence on distant supply chains.

Many already have the time. Many have the willingness. What they lack is not ability but opportunity.

As national systems become increasingly strained by debt, taxation and declining growth, local production becomes more valuable. Every item produced locally is one that does not need to be transported long distances or purchased from outside the locality. Every practical skill shared strengthens local resilience.

Artificial intelligence may replace many office jobs, but it cannot coppice a woodland, repair a dry stone wall, maintain a village hall, grow vegetables, restore biodiversity or care personally for an elderly neighbour. These activities are rooted in place.

The unemployed therefore represent a reserve of human energy waiting to be released. Instead of paying people simply to remain outside economic life, society could create the conditions in which they become active participants in rebuilding their own localities.

This is not a return to the past. It is a recognition that the future may depend less on creating ever more jobs within a shrinking industrial economy and more on enabling people to create genuine wealth where they live.

The question is not how many people leave the national labour market.

The real question is how many of them can become the pioneers of a thriving local economy.

Source

The Daily Telegraph article, “Two million could quit work: Burnham warned on tax rises”, 8 July 2026, discusses the long term fiscal outlook published by the Office for Budget Responsibility and the growing pressures on taxation, employment and public debt.