The UK lags behind international competitors when it comes to productivity, with output per hour just 1.3% higher than it was in 2007. Amongst other things, this impacts wage growth, costing private sector workers on average £5,000 in lost income every year. This productivity problem is not just at a national level, but is felt keenly at the regional level.
CBI research in 2017 showed that closing the gap could add more than £200bn to the economy in the next decade.
Whilst successive governments have tried to address this challenge, they have been hampered. Alongside stagnating productivity, inequality in the UK has grown faster than EU comparisons. This is a business issue that impacts skills, infrastructure and the health and wellbeing of the workforce. With the country facing growing levels of inequality, there’s a need to improve local decision making and develop new funding models.
Outside of London, English devolution is still in its forma