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.

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.