Hammond’s £23bn bid to close productivity gap

THE Chancellor Philip Hammond made a £23bn commitment to close the worrying “productivity gap” which sees the UK lagging behind other major economies including the USA, Germany, France and even Italy.

The cash will be ploughed into a newly formed Productivity Investment Fund over the next five years.

“Raising productivity is essential if we are to deliver a higher wages and a higher standard of living in this economy,” Hammond said.

He also pledged to double the UK’s export finance capacity and support John Lewis chairman Sir Charlie Mayfield’s financially based management skills initiative across businesses.

Hammond also he was putting £400m into venture capital funds to help prevent small high-tech businesses in the UK being sold off before growing to scale and unlock £1bn of finance to help such firms grow.

Responding, Carolyn Fairbairn, CBI director-general, said: “The Chancellor has prioritised a pragmatic down payment on future productivity growth.

“His emphasis on R&D, housing and local infrastructure will help businesses in all corners of the UK to invest with greater confidence for the long-term, during turbulent times.  This will be warmly welcomed.