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government is carrying out a review of how to help
businesses embrace new technology and latest management
techniques to push up wages and profits
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the Business Productivity Review forms part of the
government’s modern Industrial Strategy
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the review will help better understand the factors
affecting the productivity of UK business in a bid to unlock
£100 billion of untapped benefit to our economy
In a bid to increase productivity and with it the nation’s wages
and profits, Chancellor yesterday (Tuesday 22
May) announced a Call for
Evidence on the UK’s productivity, seeking views on how to
boost the performance of Britain’s businesses.
The Business Productivity Review will focus on how firms across
the country can take advantage of leading technologies,
management practices and business support services. Increasing
productivity leads to a long-term boost to workers’ wages and
businesses’ profits – a key part of the government’s
modern Industrial Strategy.
Through the Industrial Strategy, the government is building upon
the UK’s position as one of the best places in the world to start
and grown a business. Around 1,100 businesses start every day in
Britain. However, UK productivity is below the average for the
rest of the G7 advanced economies.
Research from the CBI suggests that
by encouraging more businesses to adopt the best tried and tested
technologies available – such as cloud computing, mobile
technology and e-purchasing – the UK economy could receive a £100
billion boost and see a 5% reduction in income inequality.
Acknowledging the UK’s significant economic strengths, the
Chancellor told the Confederation of British Industry
(CBI)
today that we can do more to make the most of our untapped
potential.
Business Secretary said:
For centuries Britain has been a nation of discoveries, but
these ideas haven’t always been commercialised in the UK and
new ideas applied in practice.
Now our modern Industrial Strategy is ensuring that firms
across the UK can take advantage of leading technologies and
management practices, potentially adding £100 billion to the
economy and boosting people’s earning power right across the
country.
The Chancellor also announced £20 million government investment
for the Made Smarter pilot scheme aimed at boosting productivity
and growth in the north west.
The industry-led pilot will help up to 3,000 small and
medium-sized manufacturers become more competitive through
greater use of digital technology in the manufacturing process
and in supply chains.
Made Smarter is another way the government is building a Northern
Powerhouse and is the first initiative of the Made Smarter
Commission that was launched by the Business Secretary in
February as part of the Industrial Strategy following Juergen
Maier’s independent review of digital technology in the UK
manufacturing sector.
The Business Productivity Review Call for Evidence is now open
until 4 July 2018 and the government encourages businesses, trade
associations and other interested parties to contribute their
views to it.
Notes for editors
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Respond to the call for evidence.
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To address the UK’s productivity challenge, the government’s
Industrial Strategy focuses on the 5 foundations of
productivity: ideas, people, infrastructure, business
environment and place. As part of our approach to improving
the business environment, the Industrial Strategy white paper
announced that the government would launch a review of the
actions that could be most effective in improving the
productivity and growth of small and medium-sized businesses.
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Productivity is frequently defined as output per worker, or
alternatively output per hour worked.
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The UK has a strong business environment upon which we can
build:
- 1,100 businesses start every day in Britain and we are ranked
as one of the best places in the world to start and grow a
business
- we have more than 31,000 Scale Up businesses
- between 2012 and 2016 London attracted more tech investment
than Paris, Berlin and Amsterdam combined.
