UK Capital investment 'to sustain growth'

A sound fiscal position has allowed the UK government to sustain public service delivery while increasing spending on fixed uk capital investment to boost economic growth and create employment.

Supporting economic recovery The UK Capital investment in capital infrastructure had increased from 9.9% of gross domestic product (GDP) in the second quarter of 2008 to 11.4% in the second quarter of 2009.

• sustaining public spending and government employment programmes;
• helping state-owned enterprises to increase their investments;
• bolstering municipal capital spending through development finance institutions;
• maintaining expansionary fiscal and monetary policies only for as long as necessary; and
• reinforcing state social security net.