Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Low Investment Blocking UK Growth, Says Think Tank

by June 19, 2024
June 19, 2024
Low Investment Blocking UK Growth, Says Think Tank

Investment levels in the UK remain among the lowest of the world’s richest nations, posing a significant challenge to economic growth, according to the Institute for Public Policy Research (IPPR).

The centre-left think tank highlighted that the UK’s total investment is “significantly” behind the nearest competitor in the G7 group of wealthy nations.

Despite the importance of investment for economic growth, both the Conservative and Labour parties plan to reduce government investment in the next parliamentary term. The IPPR urges the next government to commit to a comprehensive industrial strategy and end the frequent changes in policy to encourage private company investments.

Dr George Dibb, associate director for economic policy at the IPPR, emphasised the crucial role of investment in driving productivity and economic output. “If the economy is an engine, then investment is its fuel,” he said.

Investment Challenges and Solutions

The IPPR’s analysis, supported by data from the Organisation for Economic Co-operation and Development (OECD), shows the UK has had the lowest level of total investment in the G7 for 24 of the past 30 years. Currently, the UK’s investment stands at 18.3% of national income, significantly lower than the next worst performer, the US, at 21.2%.

Dr Dibb pointed out that the UK’s poor productivity performance since the 2008 financial crisis is a major factor behind low living standards. “Without resources flowing into new investment, it’s hard to see how UK economic performance can improve,” he added.

Paddy Fletcher, co-founder of the Port of Leith distillery, highlighted the difficulties faced by businesses in securing large-scale investments. While current government tax breaks help attract small investors, there is a “terrible gap” when it comes to attracting larger institutional funding.

The IPPR proposes several measures to increase investment across the economy, including:
– Committing to a comprehensive industrial strategy to remove growth barriers and provide business certainty.
– Ending frequent policy changes, noting that since 2010, there have been 11 industrial strategies or plans for growth.
– Reviewing fiscal rules to enable increased government investment.

Political Responses and Proposals

Political parties have different approaches to addressing the investment issue:
Labour: Hosting infrastructure meetings and proposing a £7.3bn National Wealth Fund for investments in steel, ports, and electric cars.
Conservatives: Offering tax breaks for company investments and reallocating £36bn from the altered HS2 high-speed rail line to local infrastructure.
Liberal Democrats: Promising a new industrial strategy for business predictability and confidence.
Reform: Proposing the abolition of business rates on non-domestic properties, funded by a tax on large online retailers, and scrapping net zero pledges to boost oil and gas investment.
Scottish National Party (SNP): Yet to publish its manifesto but promises a route back to prosperity in the European Union.

Emma Pinchbeck, chief executive of Energy UK, and Zack Simons, a planning barrister, emphasised the need for planning reform to unlock investment in renewable energy and other growth sectors. Current bureaucratic hurdles, especially in greenbelt areas, impede the development of essential infrastructure such as onshore wind farms, which are crucial for sustainable energy production.

In summary, addressing the UK’s investment shortfall requires a stable industrial strategy, policy consistency, and targeted reforms to attract both public and private investments, ultimately driving economic growth and improving living standards.

Read more:
Low Investment Blocking UK Growth, Says Think Tank

0
FacebookTwitterGoogle +Pinterest
previous post
London Reclaims Title as Europe’s Largest Stock Market
next post
Electric Car Battery Breakthrough Could Ease Range Anxiety

You may also like

Online health business backed by Freddie Flintoff hits...

January 17, 2023

Unlocking Robust Security with Big Data Analytics

April 7, 2025

Jeremy Hunt faces calls for budget giveaways as...

February 21, 2023

Bordeaux & Burgundy achieves £2m growth with SaaS...

February 2, 2023

Government ‘removes state guarantees from almost £1bn in...

November 1, 2023

Closer collaboration key to future UK-India trade, says...

October 11, 2023

Kitchen Remodel Costs In The UK

March 5, 2024

Britishvolt seeks £200m emergency funding within the next...

October 15, 2022

How to Understand Market Cycles in Cryptocurrency

March 26, 2025

Sorkin is the new Shakespeare — only with...

April 23, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved