SPERI’s latest brief examines public spending on infrastructure investment in England and assesses its relationship with private sector business activity on a regional basis. Infrastructure investment forms a key part of the Government’s ‘long term economic plan’ and the Treasury’s recent Productivity Plan identified it as a key component for raising productivity.
The Brief analyses the Government’s National Infrastructure Pipeline and shows that London is set to receive more infrastructure investment than every other English region combined. The business activity evidence demonstrates that London’s funding bias is in spite of the capital having the strongest private sector activity of all of the English regions. The findings call into question one of the key arguments used by the Government to underpin their austerity agenda which is that public investment ‘crowds out’ private sector activity.
Comments about the Brief’s findings from Dr Craig Berry, co-author of the report and Deputy Director of SPERI, can be read here.
You can also read Tom Hunt and Craig Berry’s blog about the Brief and why the concentration of infrastructure investment in areas with high levels of business activity suggests the Government is unconcerned by ‘crowding out’.