Doha – August 24 (QNA) – Qatar National Bank (QNB) indicated that the comprehensive reform of the urban planning system and the establishment of a national fund to increase investment and strengthen trade relations with the European Union and other partners are key measures to enhance long-term economic growth in the United Kingdom.
In its weekly report, Qatar National Bank discussed the three priorities of the new British government in its mission to achieve higher rates of sustainable economic growth. The first priority consists of a series of proposals aimed at improving the country’s real estate infrastructure, encouraging new investments, reducing bureaucracy and reducing project costs.
The report noted that the UK’s building planning system is expensive and stringent. Lengthy and unpredictable planning permission procedures significantly increase the costs of real estate projects, hampering residential, commercial and infrastructure construction. The system has been burdensome to the economy, with built-up area per capita having not increased since 1990, in stark contrast to other G7 economies.
This has led to lower business investment than in countries with less stringent urban planning regimes. UK Chancellor of the Exchequer Rachel Reeves has committed to reforming the national planning policy framework and “rebuilding the UK”, with the aim of building 1.5 million homes in the next five years. This reform will be a key pillar of the UK’s economic growth strategy.
The second priority, according to the report, is to create a new sovereign wealth fund to mobilize capital and increase investment in key sectors. Public and private investment as a part of the UK economy has been below the average of G7 economies since 2000. It is therefore unsurprising that the new government is taking steps to increase investment. Although the mandate and structure of the new fund have not yet been determined, it is planned to work closely with private financial institutions to direct resources to key economic sectors such as ports, steel, carbon capture, green hydrogen and factories. According to the report, the government will commit £7.3 billion ($9.7 billion) to the project and hopes to attract private investment at a rate of £3 for every £1 invested by the government. By leveraging private sector resources, the new sovereign wealth fund will be able to overcome financial constraints and encourage investment at levels that support further economic growth.
According to QNB’s weekly report, the UK government’s third priority to boost long-term economic growth is new plans to boost trade as a key pillar of its growth strategy. The new legislation is expected to facilitate harmonization with EU product standards. This regulatory harmonization will reduce uncertainty and additional costs for businesses to adapt to these regulations.
After negotiations collapsed over the election, the UK resumed talks with India, the GCC, South Korea, Switzerland and Turkey to strike new trade deals.
The report stressed that given the importance of global value chains, trade barriers affect trade with all partners. Increasing these barriers has an impact on the costs of foreign sourcing, reducing the competitiveness of British production and limiting the ability of companies to benefit from international trade.
Moreover, the report noted that improving product adaptation to EU standards and signing new trade agreements would enhance international competitiveness and open up new markets for companies, thus providing an additional boost to economic growth.
“Creator. Devoted pop culture specialist. Certified web fanatic. Unapologetic coffee lover.”