Planes and trains can deliver the growth the IMF wants

Description

The International Monetary Fund’s annual report on the UK economy calls for the Chancellor to boost economic growth through investing in infrastructure.

While the IMF is right to make this point, we must ensure we do not once again become bogged down in the simplified debate around “austerity vs stimulus” that has dominated policy discussion in recent years. Economic growth will only return through what is known as “investment spending” on planes, trains and other projects with a strong “multiplier” effect.