Tackling the productivity problem

Antony Higginbotham

Despite being one of the world’s largest economies, the UK has struggled to achieve sustained productivity growth in the years following the global financial crisis.

With the Covid-19 pandemic exacerbating these challenges, there has never been a more crucial time to address the UK’s productivity problem. But what exactly is holding the country back, and how can we turn things around?

The UK’s decline during the financial crisis and the uncertainty surrounding Brexit have had a significant impact on reduced investment and productivity. However, the problems run deeper, including a skills gap, outdated infrastructure, slow wage growth, and a lack of incentives for business investment.

Anyone who looks at that mix will realise that turning the tide is not easy. But there are signs that the right level of change is coming.

The Lifetime Skills Guarantee offers free education to adults without a level 3 qualification, enabling upskilling and retraining for changing industries.

With the rise of artificial intelligence and digital tools, and the fourth industrial revolution underway, reskilling is crucial for positive change.

Infrastructure is seeing major investment too. The rail network has more money going into it than at any point since the Victorian era, not just to allow for passenger growth but for freight growth too. The same goes for roads, air and sea ports – all seeing significant upgrades to ensure that the logistical backbone is robust.

The incentives are returning, with full expensing announced at the latest Budget to follow on from the Super Deduction. And political stability has returned.

Which just leaves wage growth. Since 2010 wage growth has been sluggish, with it being easier to hire people than invest in productivity improvements.

But the two need to be balanced. As wage growth increases, so too will the desire to invest and find new ways of getting greater output.

My question back to Lancashire’s businesses is – is this enough? And if it’s not, what more can we do together to turbocharge our productivity growth?

Enjoyed this? Read more from Antony Higginbotham MP

Latest news

1

CMAC Group appoints Matthew Ratcliffe as chief operating officer Matthew Ratcliffe CMAC

CMAC Group appoints Matthew Ratcliffe as chief operating officer

03 Apr 2025

2

For sale signs at The Villa Villa Wrea Green has been brought to market (Image credit: The Villa Wrea Green)

For sale signs at The Villa

02 Apr 2025

3

Montane group expands with new Lancashire hub Anthony Rae Scott Murcott And Adam Lee

Montane group expands with new Lancashire hub

02 Apr 2025

4

Trio of wins for Lancaster brand and digital consultancy Tom Grattan MD and Daniel Wallace

Trio of wins for Lancaster brand and digital consultancy

02 Apr 2025

5

College excellence highlighted in Ofsted report Fazal Dad

College excellence highlighted in Ofsted report

02 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

WHN Charity Quiz Night
Evenbrite Quiz 2025.png.png
LBV Hub Fundraisers
03 Apr 2025 - 03 Apr 2025

WHN Charity Quiz Night

The Stables Country Club, Bury , BL9 1PU

18:00 - 22:00

Chamber Breakfast Networking – April
Chamber logo - new-02.png.png
LBV Hub Networking
03 Apr 2025 - 03 Apr 2025

Chamber Breakfast Networking – April

The Dukes Theatre, Lancaster, LA1 1QE

08:00 - 10:00

Lancashire Business Expo 2025
https---cdn.evbuc.com-images-880395853-4862066883-1-original.20241022-091152-2.jpeg.jpg
LBV Hub Exhibitions
04 Apr 2025 - 04 Apr 2025

Lancashire Business Expo 2025

Sir Tom Finney Sports Centre, Preston, PR1 2HE

09:00 - 15:00

The Business Network Central & East Lancashire
LBV Hub Networking
24 Apr 2025 - 24 Apr 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin