Grit and determination needed to increase UK productivity
2 min read
Ahead of his question in the House of Lords tomorrow, Labour’s Lord Harrison pleads with the Government to take more action to improving the UK’s productivity.
There is a popular TV quiz programme entitled 'Pointless'. It is an entirely appropriate description of the Government’s lack of action on productivity; the blight on the UK economy which, along with an ever widening trade gap, is snagging the economic recovery.
The response last year to this perennial problem was the Government’s publication of the 15 point productivity plan, labelled ‘Fixing the Foundations: Creating a more prosperous nation.’
All the ‘points’ are very worthy: improving UK transport and digital infrastructure; increasing investment in the economy; enhancing workforce skills; building more houses encouraging exports.
But the real point is this: Her Majesty’s Government does very little to fund these admirable aims.
Just take transport infrastructure. We wait as long as a long day’s journey into night to get a decision on London Airports. Our trains are panting under the heavy load of passengers, but still pant for new rolling stock never mind HS2, HS3 or other slow speed projects. And still our roads are potholed nightmares, ready to take pioneering potholers in search of subterranean stalactites and stalagmites.
No wonder then that the UK’s productivity record is only marginally better than Japan’s amongst G7 countries. That even within the EU, France, Italy and Germany have better productivity records than us. Even Romania fares better.
The Office of National Statistics comments caustically on last week’s update on the closing 3 months of 2015’s productivity. And the OBR is scarcely kinder.
Productivity is not the puzzle that some erroneously claim. It requires a government of grit and determination.
In asking my question in the House of Lords tomorrow, I will hope for something less hopeless and pointless than what has been served so far by the business ministers.
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