Your leading article was right to highlight the challenge that the chancellor faces in demonstrating fiscal responsibility while reviving the economy (23 September). As it pointed out, the London School of Economics published a report in January – of which I was a co-author – that made a compelling case for an increase in annual public investment of about £26bn per year, equivalent to 1% of GDP, to jolt UK productivity and economic growth out of its rut. This would pull the UK out of bottom place in the G7 league table for public investment, and would promote confidence in private investors that having skin in the game would mean the government would provide supportive policies to ensure healthy long-term returns.
Our report made a further case that the strongest returns would be secured from green investment that accelerates the transition to a sustainable, inclusive and resilient economy by tackling even more effectively damage from climate change, biodiversity loss and other environmental degradation, including air and water pollution.
