Baroness Moyo

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.

Economic growth is the Government's number one mission and our strategy has consistently set out to grow the supply-side of our economy, including through reforms to skills, planning, and regulation, establishing the National Wealth Fund to unlock £70 billion of private investment, and signing new trade deals with the EU, US, and India to increase opportunities for exporters.

The IMF have said our fiscal strategy is striking “a good balance between supporting growth and safeguarding fiscal sustainability” and that our growth mission “focuses on the right areas to lift productivity”, while on spending they conclude our plans are “credible and growth-friendly” and are “expected to provide an economic boost over the medium term”.

At the Spring Statement, the independent Office for Budget Responsibility upgraded our growth forecast and confirmed we are on track to meet our fiscal rules two years ahead of target.

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.