Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the decline in total factor productivity on the United Kingdom's economic growth potential; and what steps they plan to take to address this.

Like many advanced economies, the UK has experienced a slowdown in productivity growth rates since the global financial crisis, but this has been sharper than our peers. UK productivity growth fell to the second slowest in the G7 under the previous government at an average of 0.6 per cent a year - lower than France, Germany and the US. Low investment and falling growth in total factor productivity (TFP) were key factors in this slowdown.

Increasing productivity is vital in driving economic growth. That is why growth is the priority mission of this Government and why we continue to take steps to boost productivity, including through boosting TFP.

This includes increasing the capital envelope by over £100 billion at the Budget in October and a further £13 billion at Spring Statement 2025 compared to the plans set out at Spring Budget 2024. We are also catalysing over £70 billion in private investment through the creation of the National Wealth Fund, removing barriers to investment through ambitious planning reforms, and championing growth-enhancing sectors through our modern Industrial Strategy.