Spending Review: Labour would more than double public infrastructure spending as share of GDP

The shadow Chancellor John McDonnell today declares that the Government should spend more than 3.5% of GDP on infrastructure, highlighting that the Conservatives are undershooting this figure recommended by the OECD.

Labour's McDonnell says that Britain has "so much untapped potential" and needs additional investment for "a healthy, productive and balanced economy". He says the Chancellor has presided over a slump in public investment from 3.3% in 2009 to 1.6% today and backs meeting and exceeding the OECD target of 3.5% of GDP. McDonnell singles out the Government's 'Northern Powerhouse' as being under-resourced.

"Meanwhile our corporations are sitting on vast cash piles. At least £400bn is held in corporate bank accounts - money that should be invested."

The Chancellor has said that infrastructure spending will be protected in next week's Comprehensive Spending Review but has faced criticism that even so capital expenditure will remain "well down on historic trends and low by international standards".

Whilst House of Commons library research supports McDonnell's contention that public investment has fallen as a share of GDP, it also says that the Government has been working to increase private investment in infrastructure and that total investment as a share of GDP has risen.