Low Investment Blocks UK Growth: Think Tank

Investment levels in the UK remain among the worst of the world's richest nations, and unless they improve, it is hard to see how the economy will grow, a think tank has said, Nick Edser and Charlotte Edwards reported for BBC News.

Total investment in the UK is "significantly" behind the nearest competitor in the G7 group of wealthy nations.

The Institute for Public Policy Research (IPPR) said total investment in the UK is "significantly" behind the nearest competitor in the G7 group of wealthy nations.

However, the center-left think tank said both the Conservatives and Labour plan to reduce government investment over the next parliamentary term. It is calling for the next government to commit to an industrial strategy and end the chopping and changing of policy in order to boost investment by private companies.

After years of sluggish growth, the question of how to improve productivity in the UK economy is one of the key battlegrounds in the run-up to the general election.

"If the economy is an engine, then investment is its fuel," said Dr. George Dibb, associate director for economic policy at the IPPR. Spending by businesses on things like new factories, equipment, and new technologies can help to boost productivity and economic output, which in turn can help to lift wages and living standards.