Infrastructure & Covid-19

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The UK government recently announced more than £600 billion of infrastructure spending over the next five years.  The proposed spending signalled a change of direction following the austerity measures taken in the years after the Global Financial Crisis.  This spending, however, may now be under threat as government finances are hit by the covid-19 crisis..

Borrowing for new infrastructure investment will be in addition to the borrowing needed to support the economy in the short term.  Given the pressure on public finances, the government may need to reconsider its infrastructure priorities and its approach to borrowing and financing of infrastructure after the crisis.  The response to the covid-19 crisis has seen unprecedented state invention in the economy which may change the relationship between the government and the economy in the longer term.

Read more about the policy options for further government borrowing and financing, and whether any longer-term changes in demand trends resulting from the covid-19 crisis could shape future infrastructure investment by downloading our report below.