Economy: Productivity

Lord Fox Excerpts

Thursday 28th June 2018 Lords Chamber

[Lord Bates]

If that criticism were true, we would not see that the UK is regarded as the number one location for foreign direct investment and we would not see companies coming here in the numbers that they are. We have a great strength in our economy. We have an historic weakness in productivity and we need to look at all the possible contributions to that and address them; that is what this review is all about.

[Lord Fox (LD)]

My Lords, I remind the noble Lord that foreign investment has halved over the course of the last year, so perhaps that is not the best statistic to choose. Meanwhile, manufacturing output has fallen for three successive months, construction output is 3% down year on year and the trade deficit is widening. We are pleased to hear that the industrial strategy does not have dust on it, but when do the Government think that some of their measures might actually take effect?

[Lord Bates]

On the point about foreign direct investment, just look over the past couple of weeks: we have seen Amazon announce 3,000 jobs in the east Midlands; a major biomass investment in Cheshire that will bring 3,000 jobs; and Vauxhall has announced the investment of 1,400 jobs in Luton. We are seeing record investment levels and a doubling of tech investment in the UK. This is all part of a strong, vibrant British economy that we are absolutely confident will continue to progress and improve beyond Brexit.