2.2 Government Investment
Why is it significant?

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?
For much of the 1980s and 1990s the UK public sector has consistently invested less than our major competitors (chart 2.2.1).
However, in successive Spending Reviews the Government has set out expenditure plans that will address the historic under-investment in key public services and deliver a step change in public sector investment. In particular, transport investment has shown a steep increase since 1998/99 and the Government is committed to providing sustained levels of increased investment in transport throughout the current decade (chart 2.2.2). In addition, the Government supports investment by the private sector in the delivery of public services through the Private Finance Initiative.