29 January 2025, London – UK productivity has been a systemic problem for many decades, it is encouraging to see the UK Government is taking steps to unlock “supply side” restrictions holding back growth and embark on a plan of investment.
Commenting on Chancellor Reeve’s speech earlier today, Andrew Harding, FCMA, CGMA, Chief Executive – Management Accounting at AICPA & CIMA, said: “CIMA welcomes the intent to make it easier for business to trade, raise finance, and build. However, whilst reducing complexity is a positive move, we encourage the government to focus on driving integrated thinking across productivity, regulation, innovation, and growth if it is to go further and faster.”
As part of its growth agenda and industrial strategy, the UK Government must also consider:
Develop skills for the future by investing in education, including a focus beyond those entering the workforce, and equipping existing employees with the skills they will need.
Drive efficient performance in the business of government and public sector by adopting a business mindset and best practices.
Provide certainty and encourage innovation, entrepreneurship, and investment by reforming the UK tax system to remove impediments such as cliff edges.
Embrace technological augmentation to serve the public and private sector and shift towards building a more skilled and adaptable workforce.
CIMA’s response to the Department for Business and Trade’s identifies many common challenges and opportunities for the government to drive growth and address UK productivity.