UK ‘needs £1tn investment over 10 years to hit economic targets’
The UK needs £1tn of fresh investment over the next decade if the government is to hit its economic growth targets, a City taskforce has said.
The Capital Markets of Tomorrow report, led by the City veteran and former boss of Legal & General Sir Nigel Wilson, said that in order to achieve at least 3% annual growth, the UK would have to attract around £100bn of investment per year, divided between key sectors.
That includes £20bn-£30bn towards the UK’s housing stock, £50bn for the energy sector, and £8bn for water projects. It also calls for £20bn-£30bn worth of venture capital for growing companies that are beyond the startup stage and need more sustainable funding to expand.
The report said the challenge was to make the UK “a competitive market in which to invest”. While many initiatives to boost investment in British infrastructure and companies were already under way, it stressed that the government and regulators needed to focus on creative opportunities and providing incentives for investors. “The global pitch needs to be levelled,” it added.