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

Future Retirement Success

Business

Labour urged to inject £27bn to kick-start economic growth

by August 5, 2024
August 5, 2024
Labour urged to inject £27bn to kick-start economic growth

The Demos think tank has called on the Labour government to boost public investment by £27 billion to attract private sector capital and revitalise economic growth.

The UK currently lags behind other G7 nations in terms of private investment, with British businesses investing significantly less than their French and German counterparts.

According to Demos, UK businesses invest £3.12 for every £1 of government spending, compared to £5 in 1997. This stark contrast highlights the need for increased public investment to stimulate private sector activity. Demos recommends an overall investment increase of £112 billion annually to move the UK to the middle of the G7 pack.

Labour leader Sir Keir Starmer and Chancellor Rachel Reeves have set an ambitious target to raise Britain’s growth rate to 2.5 per cent over the long term. The Bank of England forecasts a GDP growth of just over 1 per cent annually for the next three years, indicating a pressing need for robust economic intervention.

Despite Labour’s commitment to enhancing public-private partnerships, Starmer’s recent decision to scale back a £28 billion green infrastructure investment plan has drawn criticism. Even with the original plan, public capital spending was set to decline in real terms.

The government has taken steps such as launching GB Energy, a publicly owned utility provider, and establishing a National Wealth Fund with £7.3 billion to invest in low-carbon energy projects. However, Andrew O’Brien, Demos’ director of policy and impact, argues that a more revolutionary approach is required to foster sustained growth.

O’Brien advocates for a clearer economic strategy, greater policy stability, effective tax reliefs, updated corporate governance, and new institutional frameworks. He emphasises the need for businesses to adopt a long-term perspective and make tangible commitments in return for supportive policies.

Demos also suggests reviewing business tax reliefs to strengthen investment incentives and establishing stable policy sectors over a five-to-seven-year horizon. Dr Gerard Lyons of the Centre for Policy Studies adds that Britain’s growth challenges predate Brexit and that leaving the EU provides an opportunity to pursue advantageous trade deals and regulatory improvements.

Lyons cautions against the notion that rejoining the EU would resolve Britain’s growth issues, urging a realistic assessment of the current economic landscape.

Read more:
Labour urged to inject £27bn to kick-start economic growth

0
FacebookTwitterGoogle +Pinterest
previous post
Royal Mail expands parcel locker network with Yeep! partnership
next post
£1m boost for Cambridge spin-out behind solar panel innovation

You may also like

Government launches £50m Fund with Investors to turbocharge...

July 27, 2023

Smart Wealth Planning Tips for Expats Living in...

December 5, 2024

Instagram and Facebook join Twitter with paid-for verification

February 20, 2023

Most profitable businesses in the UK

May 10, 2023

Stuart Barnes scores another IR35 win against HMRC

January 20, 2023

Parliamentary Report Criticises HS2 Northern Leg Cancellation Raising...

February 7, 2024

What to look for when upgrading your vehicle?

February 24, 2023

Using a shareholder agreement to avoid conflict, delays...

March 8, 2024

Leeds confirmed as host city for UKREiiF 2026...

April 4, 2025

New study highlights regional variations in HMRC’s tax...

July 11, 2023

    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

    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025
    • US and China hold London talks to ease trade war tensions

      June 9, 2025
    • British fathers urged to join landmark ‘dad strike’ over poor paternity leave

      June 9, 2025
    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025

    Categories

    • Business (8,158)
    • Investing (2,019)
    • Politics (15,571)
    • 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