Clamour to increase infrastructure spend across political divide amid recession fears

Theresa May's new Government is considering pumping in state investment of £100bn for transport and other infrastructure by borrowing from Threadneedle Street whilst a Labour leadership contender vowed to double this amount of additional funding.

The Guardian asserted that a scheme, "openly talked about inside Westminster," would see more than £100bn in additional funding borrowed to improve roads, rail and other infrastructure as part of a new 'industrial strategy' after May said in a campaign speech that productivity was too low and additional investment was needed. It highlights opinion that "there are huge savings to be made" if the state borrows to pay for infrastructure instead of raising private finance.

The claim was made as Owen Jones, who is challenging Jeremy Corbyn for the leadership of the Labour Party, pledged a "British New Deal," in the form of a £200bn investment programme "to renew our failing infrastructure... revive our transport systems, as well as investing in people, to give hope to the next generation". A blogger claimed that the May plan is in effect the so-called 'People's quantitative easing" that Corbyn had mooted.