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In the News

Transport investment could give the UK economy a £50billion lift

Graham Watson

12th April 2023

The TUC - and in this case it is representing 48 trade unions - claim that investment in public transport can simultaneously provide a £50 billion boost to economic growth, as well as make a significant contribution to achieving net zero. In this case, there doesn't seem to be a trade-off between growth and environmental objectives, and there's also a multiplier effect too.

To quote the report:

"Investment would boost annual GDP by £52 bn by 2030 through productivity gains – an estimate based on comparisons with European locations with better public transport provision – and create 140,000 new transport jobs"

Increased investment in transport infrastructure in the UK can boost both aggregate demand and aggregate supply in a number of ways.

On the demand side, investment in transport infrastructure can lead to increased consumer spending. This is because improved transport links can make it easier for people to get to work, to visit friends and family, and to go shopping. Increased consumer spending can lead to higher economic growth.

On the supply side, investment in transport infrastructure can lead to increased productivity. This is because improved transport links can make it easier for businesses to transport goods and services, to access new markets, and to attract new workers. Increased productivity can lead to higher economic growth.

In addition to boosting aggregate demand and aggregate supply, investment in transport infrastructure can also have a number of other benefits, such as:

  • Reducing congestion and pollution
  • Improving safety
  • Making it easier for people to travel to work and to access essential services
  • Promoting economic development and regeneration

Overall, investment in transport infrastructure can make a significant contribution to economic growth and prosperity.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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