Boosting growth and productivity in the United Kingdom through investments in the sustainable economy

The UK faces large-scale investment needs across both the public and private sector. There is mounting evidence that targeted and temporary borrowing to invest in sustainable technologies and infrastructure would prove cost-effective and beneficial to living standards and economic competitiveness by increasing productivity and economic growth. This report sets out the need for long-lasting institutional and policy frameworks that can induce investment in a broad range of assets in the UK. These assets drive technological, institutional and behavioural innovation. The authors show that the transition to a sustainable, inclusive and resilient economy is a genuine opportunity for the UK to drive innovation and competitiveness and rekindle productivity growth. This requires a coherent, credible and targeted set of policies to raise living standards, manage disruption and unlock new, intelligent and sustainable forms of growth. The report is intended to guide policymakers to manage a structural transition, by taking advantage of the opportunity associated with the sustainable, intelligent and resilient economy while minimising the disruption and the risks associated with assets being left redundant and devalued in the economy of the 21st century. It makes the case for a strategic approach, noting that inaction is a choice that raises the cost of capital, reduces competitiveness and favours inefficient and unproductive economic activity.