Public investment will need to increase from current levels of about 2.5 per cent of GDP per year to about 5 per cent, equivalent to an extra £50 billion a year, approximately, if the UK economy is to succeed in the long term, according to the latest quarterly UK Economic Outlook by the National Institute of Economic and Social Research (NIESR)

The NIESR recommend targeted public investment projects in key areas such as housing, transport connectivity, education and skills, with close coordination of a national growth strategy with local and regional growth plans.

“Boosting public – as well as private – investment is the first essential step to start resolving four major issues the new government has inherited,” the NIESR said.