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Why Is UK Investment So Low? | UK's Capital Investment Gap Explained

Geoff Riley

31st March 2025

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Why is the UK lagging behind the G7—and miles behind China—when it comes to capital investment? In this video, we unpack the UK's persistent investment gap, with investment making up just 17.9% of GDP in 2024, compared to China’s 41%.

From Brexit uncertainty to austerity-era underinvestment, we explore the key factors holding back UK businesses and infrastructure—and why it all matters for productivity, innovation, and long-run economic growth.

We also take a look at current UK government policies, including the National Wealth Fund, planning reforms, and increased infrastructure spending.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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