The UK government should capitalise on ultra-low interest rates to boost economic growth by investing in sustainable energy, infrastructure and urban development projects, according to research published today by a former high-ranking Treasury official.
The research, conducted by the Treasury’s former head of economic forecasting Dimitri Zenghelis, suggests a wide-ranging green infrastructure programme funded by government borrowing could drive economic growth without prompting a spike in inflation.
Zenghelis is co-head of climate policy at the London School of Economics‘ Granthan Research Institute on Climate Change and the Environment, which published the two papers in conjunction with the ESRC Centre for Climate Change Economics and Policy.
The research’s release follows the launch of Labour leader Jeremy Corbyn’s 10-point plan to “rebuild and transform Britain” last week, in which he pledged to introduce a National Investment Bank to lead a £500bn investment programme in UK infrastructure, including investment in public and community-owned renewable energy.
Photo of River Thames by Storm Cunningham.