Planning for Ambitious Capital Spending

The chancellor has outlined an ambitious plan for capital spending, aiming for the longest sustained increase since the early 1980s. This decision stems from the insights of influential figures like Mark Carney and Gus O'Donnell, who highlighted the need for better investment in infrastructure to stimulate private sector growth. The chancellor inherited a declining trajectory for capital spending, dropping from 2.6% to 1.7% of GDP, which was already low by international standards. By shifting the focus to net financial debt calculations, the government intends to facilitate prudent investments that enhance economic growth.