Britain is in a “doom-loop” of underinvestment after years of spending less than its G7 rival, new research has claimed.
The UK ranks bottom among G7 countries and 27th in a league table of the top 30 OECD members, according to analysis by the Institute of Public Policy Research.
The left-leaning think tank calculates the private sector would have invested an additional £354bn in real terms in the UK if it had maintained its 2005 position.
IPPR, a charity with links to the Labour Party, wants something similar to the Biden administration’s US$400bn Inflation Reduction Act in the US.
Increased UK public spending will ‘crowd-in’ private sector investment, it added.