Publisher:
Scottish Fiscal Commission
Alternative Published Date
2026
Category:
Type of Resource:
Report
Fast Facts
What are the prospects for infrastructure investments in long-term assets like roads, schools and hospitals?
More details
Capital investment has important implications for the delivery of public services, economic growth, productivity, and fiscal sustainability:
- In the short-term, capital spending can boost economic growth. For example, building a new hospital or school creates jobs in the construction sector, which can raise household incomes and household spending.
- In the longer term, public capital investment can raise the productivity of both existing public and private capital. For example, improved road infrastructure can reduce transport costs for private businesses, while also improving efficiency of public services such as emergency services.
More broadly, by creating and improving public infrastructure, capital investment has wider effects on economic growth. Better infrastructure allows more people to access the labour market through improved transport networks, improving access to education, health care and leisure.
This Insight focuses on infrastructure investment, but capital spending can also cover upgrades and repairs to existing infrastructure.
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