Economists urge Britain to shift investment bias for national renewal

A group of eight senior economists has urged the UK Treasury to reform the country’s fiscal rules to significantly increase public investment. They argue that the current under-investment is a primary factor contributing to the UK’s recent economic struggles. This under-investment has led to a cycle of stagnation, exacerbating social and environmental issues. The economists, including notable figures like Lord O'Donnell and Lord O'Neill, emphasize that Labour's vision for a decade of national renewal hinges on addressing these investment biases. They believe that without a shift in investment strategy, the UK will continue to face economic decline and social challenges, undermining future growth prospects. The economists' letter to the Financial Times highlights the urgency of this issue as the government prepares for the upcoming budget, stressing that a robust investment framework is essential for revitalizing the economy and ensuring sustainable development.