Rt Hon MP, Chair of the Committee,
said: “Britain has world-class science,
world-class entrepreneurs, and world-class capital. But we lack a
world-class system to connect them. That's what this new inquiry
is about. Not tweaks at the margins — but a new architecture of
investment for a new age of risk. Because if we don't rethink
access to finance now, we won't just miss our growth targets.
We'll miss the future.”
The Government has made economic growth its
“number one mission”, aiming to secure the highest sustained
growth in the G7. Yet the UK has consistently lagged behind its
peers and in 2025, the IMF projected UK growth at
just 1.2%—below most major competitors.
Low investment is at the core of this challenge. The UK has
recorded the lowest share of investment in GDP among G7 countries
in 24 of the last 30
years and ranked in the bottom ten of OECD countries for
overall investment intensity. Closing this investment gap is now
essential to delivering the productivity, innovation, and
dynamism the British economy needs.
In a new inquiry launched today the Business and Trade Committee
will examine the causes of the UK's persistent underinvestment
and explore how the UK can raise capital formation by mobilising
greater levels of private and public finance—domestic and
foreign—into British firms and infrastructure.
We will consider:
-
A. Is British investment too low—and
why?
Focus: Macro perspectives from economists, analysts and
policy researchers
- Why has UK investment lagged so far behind peers for
decades?
- What is the scale of the investment shortfall, and how does
it affect productivity, growth and wages?
- How does the UK's savings rate, corporate structure, or tax
regime affect capital formation?
- What international models or policy frameworks offer lessons
for the UK?
- How do macroeconomic policy and monetary conditions shape
capital flows into enterprise?
-
The suppliers of capital
Focus: Views from pension funds, equity markets, venture
funds, banks and foreign investors
- Do UK institutional investors allocate sufficient capital to
productive enterprise—and if not, what are the underlying
reasons?
- What constraints do pension funds, insurance companies, and
sovereign wealth funds face when investing in UK growth
assets?
- How does the UK's financial infrastructure—including equity
and debt markets—support or hinder productive investment?
- What reforms could enhance the UK's attractiveness as a
destination for global capital, particularly from patient or
long-term investors?
- How do UK tax policies, regulatory frameworks, and risk
management practices influence investor behaviour and capital
allocation?
-
The seekers of capital
Focus: Views from businesses—start-ups, scale-ups, and
firms preparing to float
- What challenges do UK businesses face in accessing growth
finance—especially at the scale-up stage?
- Are public markets fit for purpose for UK companies seeking
to list?
- What gaps exist in venture capital or SME lending markets,
and what's the impact?
- How do UK financial products compare to international peers
like the US?
- What support do businesses need to become investment-ready,
and how can government or industry provide it?
-
Government strategy and the role of
ministers
- What is the Government's investment target, and how is it
quantified and tracked?
- How is the Investment Minister and the Office for Investment
aligning public finance with national growth priorities?
- What is being done to mobilise pension fund reform, scale-up
support, and regional capital deployment?
- How are UK policy institutions like the British Business
Bank, National Wealth Fund and DBT working to ‘crowd in' private
finance?
- What changes are being considered to improve the UK's capital
markets and attract long-term international investment?
