The lecture discusses the UK's economic recovery from recession and challenges to sustaining trend growth. It notes the UK recession was as severe as in the 1930s but recovery puts it on par with the early 1980s. Austerity measures are the largest since WWII but may undermine trend growth. The recession reduced output by 2-10% and lowered the trend growth rate to a "new normal" of 2%. Productivity improvements have closed gaps with Germany but the US productivity gap remains. Barriers to innovation and weaknesses in management practices threaten further gains. The lecture argues Britain needs a "Plan V" to strengthen conditions for long-term growth through policies like incentivizing R&D, tax reforms, and focusing human capital and