PS21161 - Investigating Barriers and Incentives to Investment in the UK - Literature Review - RAF044/2122

***Please note this is an Award Notice and not a call for competition*** This procurement is being concluded following a Mini competition against framework RM6018 CCS DPS.

The UK has historically invested less than other advanced economies. The underlying causes have long perplexed policymakers; the current evidence highlights a range of barriers that can impede the investment process. Yet it is inconclusive as to which of these most explain the investment gap between the UK and other economies. Given the link to productivity performance and it is crucial for the UK to create the right conditions for investment and to accelerate the reallocation of resources to enhance competitiveness.

Survey evidence by BEIS looking at the investment decisions of firms emphasises the broad range of issues. At the top of business reasons for not investing are economic uncertainty and an aversion to risk; yet issues around lack of workforce skills, shareholder pressures, financial obstacles all rank closely behind.