UK productivity and policy

CentrePiece article

in brief... Could a new policy institution help solve the UK’s productivity problem?

Comparatively sluggish productivity growth is one of the UK’s biggest policy challenges. Past strategies to solve the problem have lacked both sustained commitment and proper evaluation. Anna Valero and Bart van Ark call...Read more...

CEP election analysis

Growth and productivity

The collapse in productivity growth underlies many of the problems of the UK economy – from squeezed public services to stagnant living standards. Productivity growth in the UK has been weak relative to its own past and...Read more...

Blog

Vox EU:

The impact of higher interest rates on UK firms

Firms across many advanced economies have faced a significant increase in the interest rates paid on borrowing and received on deposits since 2021. Krishan Shah, Nick Bloom, Philip Bunn, Paul Mizen, Gregory Thwaites and ...Read more...

Blog

Grantham Research Institute on Climate Change and the Environment:

The UK's Spring Budget 2024: more of the same on growth and net zero?

The Spring Budget 2024 prioritised short-run tax cuts, with Chancellor Jeremy Hunt taking an extra 2% off national insurance contributions. This was anticipated, given we are in an election year - but it marks another mi...Read more...

Blog

Resolution Foundation:

Investing in Britain's future - An economic strategy for Britain (video)

Investing too little for one year is manageable, but doing so year after year is a recipe for relative decline. This is precisely what the UK has been doing and where it finds itself. Anna Valero and James Smith discuss ...Read more...

Blog

Vox EU:

Managers say working from home is here to stay

Krishan Shah, Nicholas Bloom, Philip Bunn, Paul Mizen, Gregory Thwaites, and Ivan Yotzov analyse new firm-level data to explore future remote work trends. Managers expect 2028 remote work levels to mirror those of 2023, ...Read more...

Blog

Grantham Research Institute commentary:

Sustainable investment is good macroeconomics and fiscally prudent for the UK

In the global race for supremacy in 21st century markets, the UK must create expertise in building and deploying new energy technologies, and access the opportunities for stronger and more resilient growth that will brin...Read more...

Blog

Economics Observatory:

Could a new policy institution help solve the UK's productivity problem?

Comparatively sluggish productivity growth is one of the UK's biggest policy challenges. Past strategies to solve the problem have lacked commitment and proper evaluation. One solution could be to establish a growth and ...Read more...

CEP report

Boosting growth and productivity in the United Kingdom through investments in the sustainable economy

It is now widely accepted that the UK has a major productivity growth problem, with chronic underinvestment across both the public and private sectors being a key cause. Continued low public investment, as laid out in th...Read more...

External publication

Finance for the future

The UK Government has an opportunity to mobilise far greater amounts of private investment for public policy priorities than is the case now. Blended finance, deployed well, offers a tried and tested pathway for public a...Read more...

Blog

LSE Business Review:

Britain can promote private investment and economic growth. Here's how

The UK investment ecosystem needs rewiring across the board to increase firms' desire to invest in productive and sustainable assets, and to enhance their ability to do so. Paul Brandily, Mimosa Distefano, Krishan Shah, ...Read more...

CentrePiece article

Low investment Britain: policies to promote foundations for growth

The UK investment ecosystem needs rewiring across the board to increase firms' desire to invest in productive and sustainable assets, and to enhance their ability to do so. Paul Brandily, Mimosa Distefano, Krishan Shah, ...Read more...

External publication

Ready for change

Britain's productivity shortfall is its foundational economic problem. Debate about this gap and how to fix it typically focus on raising productivity of existing firms, via two routes. First, innovation: investment, R&D...Read more...

Blog

The News Agents:

Is this Sunak's 'moment of shame'? (podcast)

Rishi Sunak was propelled into explaining his new position in a hastily arranged press conference after details of plans to adjust (water down) his commitment to green policies were leaked to the BBC. Anna Valero and Lor...Read more...

Blog

IFS Zooms In:

Are differences between companies driving inequality and holding back growth? (podcast)

What do we mean when we talk about inequality between firms? Are inequalities between firms limiting UK business dynamism? And do governments need to step in and enforce competition rules? In this podcast episode, John V...Read more...

Blog

Vox EU:

Price-setting in a high-inflation environment

Since 2021, inflation rates have increased sharply in many advanced economies. Philip Bunn, Nicholas Bloom, Paul Mizen, Ozgen Ozturk, Gregory Thwaites and Ivan Yotzov study firm pricing strategies during the recent perio...Read more...

Blog

Vox EU:

Loss aversion and consumer inertia: new evidence from phone subscriptions

Across a range of everyday markets, consumers make recurrent tariff choices in the face of a multitude of fees and plans, leading to concerns they may fail to make optimal choices of suppliers or contracts. Christos Gena...Read more...

External publication

Beyond boosterism

The UK is a low investment nation. Low business investment is a big driver of this. Low investment is one reason behind the UK's weak productivity growth, which in turn is the main reason behind the stagnation in UK livi...Read more...

CEP report

Seizing sustainable growth opportunities from tidal stream energy in the UK

This is the decade for managing the immense risks of climate change, and delivery on net zero. That means rapidly increasing the share of renewable sources in our energy mix alongside a step-change in energy and resource...Read more...

Blog

LSE:

Why has productivity in the UK slowed? (video)

Growth and productivity are often talked about in UK politics but how are they linked and what effect do they have on the economy? John Van Reenen explains....Read more...

Blog

Economics Observatory:

Frontline stories: designing furlough at HM Treasury

Richard Davies speaks to Clare Lombardelli, Chief Economic Adviser at HM Treasury and Joint Head of the Government Economic Service....Read more...

Blog

LSE British Politics and Policy:

A budget for (green) growth? Unfortunately, not yet.

In light of the climate crisis, the energy and cost-of-living crises, and longstanding productivity problems urgently needed addressing, the Spring 2023 Budget was a key moment for the government to make progress in prov...Read more...

Submission to a parliamentary inquiry and government consultation

Business, Energy and Industrial Strategy Committee - UK plc 2050 (non-inquiry session)

The session examines what policies could restore competitiveness and address the country's intractable productivity and regional inequality problems while also reaching net zero....Read more...

Blog

Research Professional News:

Autumn statement delivered reassurance, but not vision

Investing in innovation is key to the future prosperity of an advanced economy such as the UK. Chancellor Jeremy Hunt's 17 November autumn statement confirmed a commitment to raising public investments in science. Despit...Read more...

Blog

LSE Business Review:

Autumn Statement: 'no one will be spared the pain'

Chancellor Jeremy Hunt faces a difficult balancing act to try and delay many measures while doing enough in the short run to appease the markets. John Van Reenen comments briefly on what can be expected in the Autumn Sta...Read more...