Raising UK productivity compared to economic rivals is a challenge for UK plc. However the debate needs real analysis on a sector by sector basis to be effective. The service sector needs particular focus as that is where bureaucratic red tape hurts.
The improving economic climate has prompted 95 per cent of manufacturers to invest to improve productivity in their companies, according to a survey undertaken by the industry body EEF. George Osborne is expected to announce his own “productivity plan” this week in an effort to combat one of the key challenges facing the UK economic revival. The EEF study, though, suggests that Britain’s manufacturing base is optimistic enough to find its own way out of the impasse. The debate over the country’s declining productivity has moved centre stage as the economy has started to pick up. A study from the Institute for Fiscal Studies has found that at the end of last year UK productivity remained below its level before the recession began and was 16 per cent lower than where it would have been had the recession not happened.