Joining Up Pro-Productivity Policies in the UK

Tera Allas, Diane Coyle, Stephen Millard, Anton Muscatelli, Adrian Pabst, Graeme Roy, Bart van Ark, Andy Westwood, Patrick Diamond, Athene Donald, Nigel Driffield, Jan Du, Tom Forth, Tim Leunig, Philip McCann, Raquel Ortega-Argiles, Joe Peck, David Richards, Martin Smith, Anna Vignoles, Sam Warner and Xiaocan Yuan

No 65, National Institute of Economic and Social Research (NIESR) Occasional Papers from National Institute of Economic and Social Research

Abstract: There is a growing consensus among researchers and policymakers that improving the poor UK productivity performance at the aggregate, regional and sectoral levels requires sustained political leadership, significant public and business investment, as well as close policy coordination. Joining up pro-productivity policies is a huge challenge—not just for the UK, but for governments everywhere. However, one year into the Labour government, this paper argues that the UK needs to translate its plans for long-term economic growth into a clear set of priorities in order to reverse current trends and end the 15 years of poor productivity it has experienced. The collection of 14 essays brings together insights from leading academics and practitioners, and is structured around four main themes: The need to overhaul the fiscal framework. That means creating more stability and a stronger commitment to long-term public investment. The need to rewire the central state and devolve more powers—giving regional bodies real control over tax and services like health, skills, and transport. The need to better align the key drivers of productivity—skills, trade, FDI, transport, and housing—with the industrial strategy and regional growth agenda. The need to boost public sector productivity—not just to spend more wisely, but to deliver better outcomes that help people and businesses thrive.

Keywords: Development planning and policy; fiscal policy; productivity; public policy; uk economy (search for similar items in EconPapers)
Date: 2025-07
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