National Institute of Economic and Social Research - Productivity and Investment - March 2024

The objectives of The Commission are: to help understand and communicate the policy implications of new academic research related to UK productivity; to collect evidence from key stakeholders and provide summaries of research and evidence with an emphasis on regions and the devolved nations; to examine the implication of planned policies, respond to policy initiatives in Whitehall, elsewhere and o. [...] As part of these considerations, the paper suggests that the under-performance of the UK may not be quite as great as some of the submissions to The Commission assert. [...] The largest share of the stock of Greenhouse Gases (GHGs) in the atmosphere have come from the developed world, especially the US, the UK and the rest of Europe. [...] In addition to the GFC, one of the causes of low UK investment by 2023 may well be UK exit from the European Union: the uncertainty caused by the referendum in 2016, the subsequent chaotic negotiation process, the relocation of some activity to within the EU or elsewhere, and the inevitable disruptions to trade after exit, all would have weighed on private sector investment and planning. [...] 26 National Institute of Economic and Social Research Productivity and Investment The conclusion of this section is that if the UK wishes to address the productivity puzzle by stimulating investment, it needs to take a broad view of what type of investment is required in the light of the structural changes that have occurred and are ongoing in the UK economy.