Alan Brown Developments | Chancellors Productivity Planned Launched
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Chancellors Productivity Planned Launched

Chancellor publishes “ Fixing the Foundations: Creating a more prosperous nation ”, a comprehensive plan that sets the agenda for the whole of government over the parliament to reverse the UK’s long-term productivity problem and secure rising living standards and a better quality of life for our citizens.

Secretary of State for Business, Sajid Javid, launched the plan at a Speech at Birmingham.

While raising productivity is a global challenge, a large and widening productivity gap exists between the UK and leading advanced economies.

Narrowing this gap is a prize worth striving for. For instance, matching the productivity of the US would raise GDP by 31 per cent, equating to around £21,000 per annum for every household in the UK.

The government’s framework for raising productivity includes 15 key areas, built around two pillars: first, encouraging long term investment, and secondly, promoting a dynamic economy. These can be summarised as follows.

 

Long term investment

Business investing for the long term.

 

Skills and human capital

 

Economic infrastructure

 

Ideas and knowledge

 

A dynamic economy

Flexible, fair markets

 

Productive Finance

 

Openness and competition

 

Resurgent cities

As part of ensuring that the government can make the finest possible assessment of the UK’s productivity, the Chancellor has also asked former Deputy Governor of the Bank of England, Sir Charles Bean to lead an independent review of the quality, delivery and governance of the UK’s economic statistics, so that we can measure productivity in a modern and increasingly technological economy.

The Chancellor of the Exchequer, George Osborne, said:

The only way to sustainably raise the living standards of the citizens of our nation is to confront the challenge of our lifetime, to raise productivity.

Taken from: https://www.gov.uk/government/news/productivity-plan-launched  15/07/2015 14:30

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