BRITAIN has the lowest investment in the G7 — in a blow to PM Sir Keir Starmer’s push to kick-start growth.
Official figures show total investment by government and businesses stood at just 18.6 per cent of GDP in the three months to September.
That leaves the UK behind every other major advanced economy — even Germany, which is mired in its longest period of stagnation since World War Two.
The Office for National Statistics’ figures pile pressure on Sir Keir and Chancellor Rachel Reeves, who have vowed to boost investment.
Economists warn the weak numbers are choking growth, with the economy contracting or flatlining in nine of Labour’s first 16 months in power.
Tera Allas, of the Productivity Institute research group, said the lack of investment has a “huge impact” on Britain’s economic growth.
She warned policy uncertainty and a planning system which is “seriously difficult to navigate” are putting companies off major projects.
Figures from the Organisation for Economic Co-operation and Development show this is not a new problem.
Britain has lagged behind the G7 investment average for more than 20 years, ranking last in 23 of the past 31 years.
Labour has promised tens of billions of pounds in public spending on infrastructure, transport and house-building.
PwC economists say public investment will rise by £13billion in 2026–27, but warn private investment will stagnate owing to weak business confidence and slow profit growth.
A Government spokesman said: “The UK is forecast to be the second-fastest-growing G7 economy over 2025, and the Budget will reduce inflation, helping the Bank of England to cut interest rates.”