The British Prime Minister wants the economy to grow by 2.5% a year, but the country needs a lot more money.

A new report published on September 6th states that the UK needs an additional £1 trillion (equivalent to $1.3 trillion) in investment over the next decade to boost economic growth.

Britain needs $1.3 trillion to revive its economy. (Source: Getty Images)

New British Prime Minister Keir Starmer declared during his election campaign ahead of the July 4th election that he wants the economy to grow by 2.5% per year.

This is a level the country hasn't reached since before the 2008 financial crisis.

According to a report by the UK financial services lobbying group Capital Markets Industry Taskforce, to achieve an annual growth rate of 3%, the UK needs to invest an additional £100 billion per year over the next 10 years, particularly in energy, housing, and venture capital.

According to the report's lead author and former chief executive of Legal & General, Nigel Wilson, the aforementioned investment could come from the £6 trillion in long-term capital in the UK's pensions and insurance sector.

Nigel Wilson observed that Britain had invested too little in itself for a long time, leading to a significant gap between the British economy and other developed countries in the Group of Seven (G7) industrialized nations.

To remedy this situation, Wilson suggested that available long-term capital in the country needs to be reallocated to stimulate economic growth.

The report also stated that the UK economy needs an additional £50 billion annually for energy investment to meet carbon neutrality targets, £30 billion for housing, and £20-30 billion for venture capital.

Additionally, the government should consider investment incentives, such as tax breaks on shares held by small investors. This could help increase public participation in the stock market, thereby boosting investment and economic growth.

Source: https://baoquocte.vn/thu-tuong-anh-muon-nen-kinh-te-tang-truong-la-25nam-nhung-dat-nuoc-can-them-rat-nhieu-tien-285242.html