OECD: Up infrastructure spend for growth


The Organisation for Economic Cooperation Development (OECD) has claimed the UK should invest more in infrastructure for growth.

In the OECD's Economic Outlook report, which provides forecasts for a large number of countries, the body claimed the UK would be best served by increasing its public works programme.

It said: 'Continuing to shift the composition of public expenditure in favour of infrastructure investment would enhance growth prospects.'

The news follows the International Monetary Fund's trip to the UK, where it monitored and evaluated the UK's economic prospects, claiming the most successful formula to increase growth would be through bringing forward some of the government's planned infrastructure projects.

The IMF called on chancellor George Osborne to plough another £9bn into infrastructure spend, but claimed the projects, which included social housing, schooling and other public facilities, would be 'fiscally neutral' as they were already factored into the balance sheet and should merely be brought forward to strengthen growth forecasts.

David Lipton, the IMF’s deputy managing director, said: 'We suggest the Government bring forward planned capital spending and consider measures such as reducing the effective marginal tax rate on investment and introducing tax allowances to raise equity.'

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