Office for Budget Responsibility downgrades its productivity growth targets.
Will our councillors on the “Joint Committee” with our LEP show similar responsibility?
“… The Office for National Statistics reported last week that the UK’s level of productivity fell 0.3 per cent in the three months to June, meaning that the national output per hour worked is below where it was in the final quarter of 2007, almost a decade ago.
The OBR said that the recent productivity fall was “almost certainly” exacerbated by the impact of the 2016 Brexit vote, but it added that the weakness in productivity since the financial crisis was a global phenomenon too.
The OBR had projected in March that UK productivity would grow by 1.6 per cent in 2017, by1.5 per cent in 2018, by 1.7 per cent in 2019, and 1.8 per cent in 2020.
“It no longer seems central to assume that productivity growth will recover to the 1.8 per cent we assumed in March 2017 within five years,” the OBR said on Tuesday.
“We expect to lower our forecast for cumulative potential productivity growth significantly over the next five years, without going so far as to assume that there is no recovery at all from the very weak performance of recent years.”