In the 2018 Budget, the government adopted key recommendations from the CBI's 'From ostrich to magpie' report which highlighted a need for companies to embrace technological change.
The Budget brief states that increasing productivity is the best way to boost wages, improve living standards, and grow the UK economy. The Office for Budget Responsibility (OBR) has forecast stronger productivity growth over the next five years. However, productivity growth slowed globally after 2008, and the slowdown in the UK was particularly acute.
The Budget announces new funding for management practices training, mentoring programmes and expansion of the Knowledge Transfer Partnership represent concrete action. This comes alongside an increase to the National Productivity Investment Fund, so that it now totals £37 billion.
The CBI is glad to see much-needed attention given to supporting businesses in improving their productivity through embracing new technologies. It continues to lobby on behalf of members to tackle our national productivity challenge by driving the adoption of digital technology.