The ‘UK productivity puzzle’ refers to the long-term decline in productivity growth in the United Kingdom. Sluggish growth has persisted since the 2008 global financial crises, and scrutiny of productivity barriers, alongside the development of potential solutions for productivity improvements, are top items on executive agendas. A UK government productivity initiative — to invest in skills, digital adoptions, and infrastructure to boost productivity and growth — is underway. Management accountants and finance professionals are also playing a crucial role in decision-making and strategies for increased productivity and profitability.
This is the first of a series of reports on productivity that the Association is undertaking. This report, Tackling the UK Productivity Puzzle, focuses on factors the UK government and finance professionals must be aware of and what changes are needed to make a difference and tackle the productivity slowdown.
The report focuses on:
How is productivity defined, measured, and controlled on a micro and macro level
What drives productivity and what are the barriers to it
How members can set and manage the productivity agenda of their organisations
What the UK government can do to ensure productivity improves in the UK and support the aims of levelling up.
The report captures management accountants’ roles in decision-making and strategies for productivity growth. Their contribution to analysing and measuring firms' level of productivity is critical and with that in mind the report aims to inform and provoke CIMA members to develop a holistic approach towards analysing and managing productivity. It also includes recommendations to policy makers and business leaders that aim to support them in improving productivity.