UK should double investment, says think tank

NIESR said public investment needed to be doubled to 5% of national income to fund transport, housing, education and skills, and boost productivity. — Reuters

LONDON: Britain needs to spend an extra £50bil a year on public investment to boost productivity and long-run growth, largely funded by public borrowing, the National Institute of Economic and Social Research (NIESR) says.

NIESR said Britain’s economy will only grow by 1.1% this year and does not expect annual growth to exceed 1.3% in between now and 2029, which is well short of a 2.5% goal suggested by Prime Minister Keir Starmer in the election campaign that took Labour to power in last month’s election.