UK Productivity Council Created Following Autumn Statement Promise
The UK's productivity rate is behind several Western countries, with suggestions any improvement could add £100bn of GVA every year
A UK Productivity Council has been created to help support small businesses and drive the country’s productivity rate – following last week’s announcement that a £23bn National Productivity Investment Fund was to be established.
The proposal to create a such a council has been spearheaded by several UK business leaders in conjunction with leading industry bodies including the Confederation of British Industry (CBI) and the Institute of Directors (IoD).
The council will be private sector led and will receive £13m in seed funding from the government, phased over three years.
The council will have an advisory board, a chief executive and a leadership team of around five people, be supported by up to 15 staff, and draw on the industry knowledge and expertise of business leaders who have contributed to date.
Among its proposed plans include:
- Developing a number of benchmarking tools in conjunction with development partners, including Sage, to help aid productivity
- Creating ‘productivity hubs’ to connect businesses with industry leaders in their area
- Using data and analytics to create evidence based policy
The UK is currently well behind its Western neighbours when it comes to productivity, and stands around 36% behind Germany, 30% behind the US and France and 10% behind Italy.
Research suggests that any modest improvement could potentially unlock £100bn of gross value added (GVA) every year – signifying the impact the measure could have.
Greg Clark, business secretary, said:
“Boosting productivity is a key part of this government’s industrial strategy, making sure the UK economy is fit for the future. That’s why last week we announced the £23bn National Productivity Investment Fund, including £13m for the new UK Productivity Council. I look forward to seeing the council’s work in helping companies to prosper and grow.”