Budget 2017 began with a bleak assessment of the UK’s growth prospects. For those of us following the economic trends and policy debate, there was little surprise at the downgrade of future productivity growth by the Office for Budget Responsibility. Productivity has flat-lined since the financial crisis as successive budgets have failed to have much discernible effect on the […]
The UK’s financial services industry is not nearly as London-centric as the creative industries. Rather than the South East of England being the country’s productivity engine, it is a band stretching west from the capital along the M4 corridor towards Bristol. The East of England stands out nationally in terms of the intensity of local investment in research and […]
Every government has an industrial strategy however it is articulated: government affects the investment climate for business through tax and regulation; establishes national priorities; invests in skills, infrastructure and research; and procures outputs from the private sector – all of which influence the evolution of the private economy.
In the UK, business and politics have always been intertwined. The desire […]
As a Research Director of LSE’s Growth Commission, Anna Valero spent part of the post-Brexit vote months studying the gaps between public policy and the new economic reality in the UK. In an interview with LSE Business Review’s managing editor, Helena Vieira, she discusses what the UK could do to stimulate economic growth and fight inequality. The skills gap is one of […]
Philip Hammond, by Foreign and Commonwealth Office, under a CC-BY-2.o licence
In his first Autumn Statement (and last – since he has decided to abolish them in favour of an annual November budget), the Chancellor presented the key forecasts from the Office for Budet Responsibility’s economic and fiscal outlook, the first since the June referendum. While there is still major uncertainty […]
© Copyright Martyn Pattison and licensed for reuse under this Creative Commons Licence
The LSE Growth Commission was set up in 2012 to provide authoritative and evidence-based policy recommendations that target sustainable and inclusive long-term growth in the UK. In 2013 the Commission published a Report, Investing for Prosperity: A Manifesto for Growth, which focused on three main areas where […]
In 1900, only one in a hundred young people in the world were enrolled at universities, but over the course of the twentieth century this rose to one in five. It turns out that this enormous expansion of the higher education sector was not just the product of riches – it has helped fuel economic growth.
We compiled new data […]
A clear growth strategy would steer the UK away from short-term solutions to its productivity puzzle
Productivity growth is the only way to achieve sustainable improvements in living standards. Yet since the financial crisis in 2008, UK productivity growth has been stagnant. We are now 14 percent below the level that would have been achieved if pre-crisis trends had continued (Figure 1).
Figure 1: UK productivity growth – GDP per hour worked
Source: Whole Economy GDP per […]