The chancellor will need to spend an extra £20bn by the end of the parliament to maintain public investment at its present levels. Rachel Reeves has promised to unveil a 'budget for investment' next week, while reversing the 'years of underinvestment' overseen by the previous Conservative government. However, this would involve taking on billions of pounds of fresh debt if, as is widely expected, the government chooses to borrow more to invest.
Dr George Dibb, associate director at IPPR, said: 'The UK has had chronically low levels of public investment since the 1970s, this has left us with crumbling infrastructure, out-of-date technology in our public services and undermined the foundations of our economy. 'Compared to other G7 economies we've never even been average.
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