Wednesday, August 12, 2020

Zero growth in productivity raises concerns for the economy

New figures released by the ONS have revealed that in the three months to September 2019, the state of productivity in the UK showed zero growth.

Labour productivity for Quarter 3 of 2019 had no growth compared to the same period last year. Meanwhile the output per worker also showed no growth, at 0%, in Quarter 3 2019, compared with the same quarter in the previous year.

Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “Today’s figures just go to highlight the scale of the problem that the country has when it comes to productivity.

“Months of uncertainty have done nothing to help small businesses which have been struggling under the weight of rising costs, soaring business rates and continued difficulties in the economy.

“It’s critical that the next Government gives the economy a much needed shot in the arm by investing in new infrastructure such as broadband and 5G networks, giving small firms the best tools available to flourish.

“In order to increase productivity, it’s vital that we encourage new innovations through R&D. This vcan be done through making the tax credit system as well as the Patent Box tax relief, more accessible to small firms who innovate which would be a big step forwards as small businesses, are likely to lack dedicated R&D and accounting departments.

“Small firms are the backbone of the UK economy and this is why it’s more important than ever that they are given the support needed to invest, grow and succeed.”

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