Investment drives growth. That’s why gloomy forecasters are so wrong about the budget

Rachel Reeves has dared to invest, tax and borrow on the scale necessary. Photograph: Paul Marriott/REX/Shutterstock

Will Hutton

The Office for Budget Responsibility’s extreme conservatism means it has woefully underestimated the impact of Labour’s public spending plans

here is a consensus among economists that a precondition for higher growth is higher levels of investment, and that one of the most certain ways of lifting investment levels is for the state to provide a lead.… Read the rest

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