Live revision! Join us for our free exam revision livestreams Watch now

Topic updates

Why underinvestment is holding back the UK economy

Graham Watson

28th September 2023

It is perhaps ionic that Faisal Islam should chose to illustrate a story about under-investment in the UK with Milton Keynes. The reality is that the UK's under-investment is as old as the 1960s city.

The fact of the matter is that Britain has had a productivity issue for nearly 60 years. There are lots of factors at play - and it's taken lots of different forms - culminating in lower levels of robot technologies and low public sector investment too.

It's also true that for many in government, deindustrialisation and a reliance of financial services has, for most of the time period, masked some of this and kept growth high. However, perhaps we've lost some of our competitive advantage in finance, and as our trading partners forge ahead, we're left lagging.

Please read: The deep rooted problem holding back the UK economy (BBC news)

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.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.