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Why treating health as a national asset is key to economic growth

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Video - Podcast
Translations from English are done by AI, without human oversight, and may not be accurate
Health analytics Demographics Population 2050
Dr Jonathan Pearson-Stuttard Partner & Head of Health Analytics
Stuart McDonald Partner & Head of Longevity and Demographic Insights
Rocky landscape

The UK’s population is ageing, and as people live longer, they’re increasingly living with multiple long-term health conditions. This trend isn’t just putting pressure on healthcare; it’s having a huge impact on the workforce, public finances and wider economy.

In this blog, we explore how public health, healthcare services and the economy are deeply interconnected, and why it’s time to rethink the way we value health and prevention.

Why is multi-morbidity such a growing challenge?

Over the past two decades, the UK has become far better at treating illness and keeping people alive for longer. But progress in preventing disease, or curing it outright, has been much slower. As a result, more people are living for longer with multiple, often linked health problems like type 2 diabetes, heart disease, obesity, arthritis and depression. Many of these conditions cluster together – for example, someone with diabetes is at higher risk of stroke, kidney disease and liver problems. Yet, our health services still treat people largely by condition, not holistically, which makes care complex, fragmented and costly.

The real economic challenge is that these conditions are increasingly affecting people of working age, not just retirees. Rising rates of obesity, diabetes and poor mental health are driving up economic inactivity and long-term sickness, with serious consequences for productivity and public finances.

How do health inequalities play into this?

Health inequalities remain stark. The gap in healthy life expectancy between the most and least deprived 10% of women in the UK is around 19 years, around twice as large as the gap in life expectancy, meaning poorer communities not only live shorter lives but spend more of that time in poor health.

These inequalities affect demand on healthcare services, impact local economies and widen regional disparities. If we drill down even further to look at smaller local communities, those inequalities grow wider still.

Why should health be seen as an economic asset?

Traditionally, illness has been viewed as a cost to society, with little focus on the economic benefits of good health. But that mindset is shifting. There’s now growing evidence that improving population health boosts labour force participation, reduces welfare costs and drives local economic growth.

Recent work by LCP’s Health Analytics team looked at developing frameworks to quantify the wider value of health interventions – not just in terms of NHS savings, but also their impact on productivity and the public purse. Obesity medicines, for example, could reduce disability benefits and increase workplace participation, providing a return on investment far beyond direct healthcare outcomes.

What’s the outlook for prevention and innovation?

There are challenges ahead, with demand on healthcare services continuing to rise, but there are reasons to be optimistic. From new obesity treatments and cancer therapies to AI-driven efficiencies, medical innovation is creating opportunities to improve outcomes and productivity.

Prevention remains the best long-term solution. Interventions like better blood pressure management can have positive effects within 18 months, and public attitudes towards ‘nanny state’ measures have softened significantly in recent years. The public now recognises the value of creating healthier environments, which in turn supports economic prosperity.

Our key takeaway

The public’s health is no longer ‘just’ an issue for the NHS; it’s an economic issue. To meet the demographic challenge ahead, policymakers, businesses and communities need to treat good health as a national asset. That means properly valuing prevention, reducing health inequalities and investing in the long-term wellbeing of the population. The evidence is clearer than ever. Now it’s about turning that into action.

Beyond Curious with LCP: Why public health is an economic issue

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