Written question asked by Matthew Pennycook (Labour) on Monday, 25 April 2016, in the House of Commons. It was due for an answer on Wednesday, 27 April 2016. It was answered by Greg Hands (Conservative) on Wednesday, 4 May 2016 on behalf of the Treasury.

Productivity

Question: To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the accuracy of the methodology used to measure productivity in the UK.

Answer: The Independent Review of UK Economic Statistics, commissioned by the Chancellor and Minister for the Cabinet Office last summer, suggested that fuller measurement of the economy could add between one-third and two-thirds of a percent to the growth to UK GDP. Better measurement of the digital economy, intangible investment and the sharing economy could therefore improve measurement of output, and thus productivity. The Chancellor welcomed the report’s findings at Budget 2016 and committed to invest over £10m in a new hub for data science, and a centre for excellence for improving measurement of the modern economy.

Secondary information