Response to Ed Balls' proposal to spend 4G windfall on housing

1/10/12

Shadow chancellor Ed Balls has today called for the 4G windfall to fund housing and stamp duty breaks.  In September, Nesta's economic plan for innovation-led growth, Plan I, highlighted the need to invest the 4G windfall back into science, technology and innovation - not into mostly 19^th and 20^th century infrastructure such as housing, rail and roads.

Geoff Mulgan:

"Calling for the 4G windfall to fund housing and stamp duty breaks is another example of government and opposition's fetish for concrete: a default response to plough any new investment into physical infrastructure - from new roads to new houses and new railways.   Because the proceeds of the 4G auction (estimated at £3-4bn) are the result of scientific and technological innovation, we should be investing them back into the next generation of science and technology to drive innovation and economic growth. This will have a bigger impact on long term growth and jobs.  

"As Nesta has shown, over the last decade UK business prioritised investment in concrete over investment in innovation - a £24bn error as business stopped investing in future products, services and ways of working.  We need sustainable economic growth and to not risk repeating the mistakes of the last decade. Now is the time to get away from the fetish for concrete - and prioritise investments which will have the most long term impact."

Have your say on how you think the 4G windfall should be spent? bit.ly/QFsbRw 

Plan I is available to view at www.nesta.org.uk/PlanI and the Innovation Index showing a £24 billion decline in innovation is available here.