Delivering economic growth and improving productivity is the government's central mission. Since 2010, productivity growth has been less than a third of the productivity growth in the decade prior to the financial crisis. If productivity growth had remained at the previous rate of 2.1% per annum, then GDP per capita would be £12,500 higher in today’s prices.

This is why the government is making further reforms to deliver long-term growth, including: ambitious planning reforms; a modern Industrial Strategy; the development of a 10-year infrastructure strategy; and the publication of the Get Britain Working White Paper. The government expects these measures collectively to have a positive impact on growth. For example, the OBR recognised that proposed changes to the National Planning Policy Framework “may enable greater delivery of new housing and infrastructure projects, which would boost the associated investment flows, as well as increasing productivity over the longer term”.

In their Economic and Fiscal Outlook, published alongside the Budget, the Office for Budget Responsibility evaluated the government’s announced Budget package on public investment as increasing the level of GDP by 1.4% in the long-term.

Productivity is the main driver of long-run economic growth and a key determinant of living standards. We continue to assess ONS inflation adjusted data. Details covering 2018 and 2023 Q3 are detailed below.

The Government continues to improve access to finance, skills, business support and to address barriers to trade using schemes such as Help to Grow: Management, British Business Bank programmes and the Export Academy.

The Government is working to improve business productivity in various ways. These include: Help to Grow: Management scheme offers training to help small businesses across the UK improve their performance and boost growth potential. The British Business Bank supports access to finance, and business helplines across the UK provide advice and guidance. Our network of Growth Hubs around England, and devolved equivalents, offer businesses support in their local areas. Our export growth support includes our Great.gov.uk online offer, the Export Academy, our International Trade Advisers and International Market advisers, as well as access to finance via UK Export Finance.

Labour productivity in the UK is just 2.4% above its pre-crisis peak. Productivity growth has slowed globally since the crisis but in the UK this slowdown has been more pronounced - across the G7 productivity growth has slowed from 1.9% per year in the decade to 2007 to just 0.8% since. In the UK, by comparison, it has fallen from 2.3% pre crisis to 0.3% since. To level up growth we will continue to invest responsibly including increased investment in infrastructure - connecting the country and businesses by road, rail and broadband and committing to our target of 2.4% of GDP being spend on R&D. We will also continue to invest in people – our greatest asset – levelling up skills and opportunity by creating a new national skills fund.

The Industrial Strategy is our long-term plan to boost productivity by backing businesses to create high-quality, well paid jobs throughout the United Kingdom, with investment in skills, industries and infrastructure. ​​The Industrial Strategy is how we are creating an economy that works for everyone: highly innovative, highly skilled and high quality, supported by low taxation and smart regulation. ​

Through a cross-government programme, Industrial Strategy focuses on:

• Strengthening the Foundations of productivity – by encouraging innovation, developing high quality jobs, supporting UK businesses and fostering growth in all parts of the UK.
• Building long-term strategic partnerships with businesses through Sector Deals between government and industry.
• Taking on Grand Challenges in Artificial Intelligence and Data Economy, Clean Growth, Ageing Society and Future of Mobility - society-changing opportunities and industries of the future where the UK can build on its strengths and lead the world.