Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Mark Garnier Excerpts
Tuesday 8th September 2026

(1 month ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Mark Garnier Portrait Mark Garnier (Wyre Forest) (Con)
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Many commentators have commented about public sector productivity underperformance. EY tells us that the public sector has underperformed to the point where it has cut GDP growth by 3% since 2019. The Institute for Government highlights an average of nearly 1% underperformance every year for that same period. Morgan Stanley reminds us that in the last year private sector productivity was up 1.8%, but public sector underperformance dragged it back into negative territory. Despite that, public sector pay was up over 6% last year, against private sector pay up just 2.8%. Why are the Government rewarding poor performance and does the Chancellor think that is sustainable?

Emma Reynolds Portrait Emma Reynolds
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I can reassure the hon. Gentleman that we are focused on driving public sector productivity to reach the efficiency targets I talked about. We are holding each Department to account on that. As I said earlier, we are seeing great progress in the NHS, which is making a huge contribution to our productivity gains as a Government.