3.6 Government investment

The public sector is responsible for a significant part of the nation’s capital stock and plays a lead role in investment in transport and other communications infrastructure.  

How does the UK perform?

In terms of government investment as a percentage of GDP, the UK hIn terms of government investment as a percentage of GDP, the UK has consistently underperformed compared with its main competitors, lagging all G7 countries for the periods 1980-1989 and 1990-2001 (Chart 3.6.1). 

The legacy of under-investment can be seen in our transport infrastructure for example. Total transport investment has been falling in both real terms and as a percentage of GDP since the early 1990s (Chart 3.6.2), but is forecast to rise under the Government’s Ten Year transport Plan.