The issue of lagging productivity has weighed heavily on the shoulders of industry leaders, consumers, and even Members of Parliament. As Brexit uncertainty has continued to linger, employees have struggled to maintain a steady rhythm at work. Economic issues such as high inflation, household debt and interest rate hikes have further hindered workplace morale, encouraging doubt and uncertainty over personal and professional prospects.
While politicians have claimed to have this at the forefront, little progress has been made. Shadow Chancellor, John McDonnell has now come forward to criticise the government’s treatment of the issue and promises that a Labour government would put productivity growth at the top of the agenda.
While politicians row over their ability to follow through with mandates, businesses can improve productivity themselves. Investing in new equipment or renovations around the office can ease the daily grind, and inspire the enthusiasm of employees. By approaching credit management companies like here at CPA, business owners can free up cash flow and get to work on improving the work atmosphere. At CPA, our debt recovery services chase unpaid invoices and award our Members with renewed financial security.
The Shadow Chancellor has said that if the Labour party won power it would consider asking the Bank of England to work on a three percent productivity growth target, in what would mark one of the most radical economic policies towards the bank in decades.
Currently, the BoE’s main focus lies in keeping inflation to as close as two per cent as possible.
In a speech later today, McDonnell will say: “We want to build the economy of the future, and to do that we will need to reform the economic architecture of this country so that it is prepared to meet the challenges of this century.”
The shadow chancellor is also expected to say that while he supports the BoE retaining its independence, the current financial system is not delivering investment across Britain.
“Our financial system right now isn’t fit for this purpose. We need one that helps deliver enough investment in the high-technology industries and firms so that we can reboot and rebuild Britain.”