Question to the HM Treasury:

To ask His Majesty's Government, in light of the Chancellor of the Exchequer's call for a public sector productivity review, and findings in the recent report by Mario Draghi on The future of European competitiveness, what plans they have for a wider assessment of productivity across the UK economy, including the impact of AI.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The government will establish a new approach to public service reform to drive greater productivity in the public sector. Over the coming months the Treasury will continue to work with departments to improve productivity and efficiency. More detail on this work will be provided in the upcoming Autumn Budget and the next multi-year Spending Review, due to conclude in Spring 2025.

The Government engages regularly with key organisations such as the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the Office for National Statistics (ONS) to understand key structural factors and barriers affecting UK productivity growth.

Estimates from the IMF show that while the exact economic impact hinges on the wider development and adoption of AI, and realisation could be gradual, the UK could ultimately see productivity gains of up to 1.5 percent annually.

Question to the Department for Work and Pensions:

To ask His Majesty's Government whether they have any plans to conduct an assessment of the impact of artificial intelligence on the UK workforce, and if so, when.

Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)

We want to ensure that people have access to good, meaningful work. Changes to the labour market are to be expected and we remain mindful of them and their effect on the UK workforce.

The Get Britain Working White Paper sets out how we will address key labour market challenges and spread opportunity in order to fix the foundations of our economy so we can make the most of the opportunities AI presents. This includes launching Skills England to create a shared national plan to boost the nation’s skills, creating more good jobs through our modern Industrial Strategy, and strengthening employment rights through our Plan to Make Work Pay.

We also recognise the impact of artificial intelligence (AI) on economic growth, job creation and productivity. We are working across government to understand the challenges and opportunities that AI presents and will continue to monitor this rapidly developing area.

Found: Lord Sewell of Sanderstead, Lifelong Learning (Higher Education Fee Limits) Bill.......... 19 Baroness Moyo

Found: Baroness Moyo asked for specific plans to encourage investment.