New analysis from Labour based on figures from the IPPR show that
Britain attracted more investment from businesses under Labour
than under the current Conservative government. Annual
business investment was 10% higher under Labour, equivalent to
£25 billion more investment each year in today’s prices.
The average private investment as a percentage of GDP under the
last Labour government was 11.1% while the latest available
figure was under 10%.
After 13 years of economic mismanagement, the Conservatives saw
Britain fall to the bottom of G7 rankings for business investment
in 2019, where we have remained since. This has been a key driver
of the UK’s poor productivity levels and, subsequently, economic
performance.
This situation has been exacerbated by the chaos overseen by the
Conservatives in recent years that saw 4 Chancellors and 4
Business Secretaries in 2022 as well economic turmoil from their
kamikaze Budget last Autumn.
As part of their mission to have the highest sustained growth in
the G7, Labour has a plan to bring business investment back into
Britain, with a modern industrial strategy that will give
investors confidence in Britain and its ambitions under Labour.
The Green Prosperity Plan will use public investment in the
industries of the future as a catalyst, crowding in business
investment in areas such as renewable energy, electric battery
manufacturing or carbon capture and storage.
, Labour’s Shadow
Business Secretary, said:
“We cannot go on having the lowest levels of business investment
in the G7. Labour will turn this around as part of our mission to
secure the highest sustained growth in the G7. We know what it
takes to attract investment to this country. You need a stable
and credible government giving businesses the room they need to
grow, creating jobs and goods for British workers.
“Labour will put an end to the uncertainty that holds firms back.
Our modern industrial strategy will bring investment in
everything from factories to start ups and give business the
environment they need to grow and flourish.
“All the Conservatives have offered investors is political
turmoil and constant policy change undermining confidence in
Britain. It’s clear business performs better under Labour.”
Ends
Notes:
- The analysis is based on the difference between the
average levels between 1997-2010 and from 2010 to now.
- GFCF is treated as equivalent to investment and GFCF by
corporations, treated as private sector investment.
Gross Fixed Capital Formation (GFCF) by corporations as a
percentage of GDP
|
Average GFCF by corporations under Labour
(1997-2010)
|
11.10%
|
|
Average GFCF by corporations under the Conservatives
(2010-2020*)
|
9.97%
|
|
Difference
|
1.12 pp
|
|
In UK GDP CVM (£m)
|
25,064
|
* latest available data
