Economy: Productivity

Lord Haskel Excerpts

Wednesday 23rd July 2014 Lords Chamber

Asked by

[Lord Haskel]

To ask Her Majesty’s Government what steps they are taking to raise the United Kingdom’s productivity.

[Lord Popat (Con)]

My Lords, the Government’s long-term economic plan is working, with GDP increasing by 0.8% in the first quarter of 2014. Productivity is also growing, with output per worker increasing by 0.6% in the first quarter of 2014. Alongside deficit reduction and an active monetary policy, we are making longer-term structural changes to support long-term growth. The Government’s industrial strategy policies and four key growth ambitions are also attracting investment and creating jobs.

[Lord Haskel (Lab)]

I welcome what the Minister says but is it actually working? Thanks to the Government’s policy of the job-rich, low-wage, low-skill, long-hours economy, as a nation we are producing fewer goods and services than we did six years ago. With such a policy, how do the Government intend us to pay our way in a competitive world, reduce our balance of payments deficit and raise living standards, if not through productivity?

[Lord Popat]

My Lords, the party opposite is quite often desperate to find worrying economic news. I will talk about productivity: our growth is up, exports are up, manufacturing is up, employment is up, SMEs are up and inward investment is up. Productivity is an area that has remained static. From experience, noble Lords will know that this is a long-term project; it takes time to filter through our economic cycle, to see more productivity.