Commenting on Philip Hammond’s speech today at the Conservative Party conference in Birmingham, Yael Selfin, head of macroeconomics at KPMG in the UK, said
“The Chancellor put productivity at the top of his priority list in today’s speech naming it as an acute issue for the UK. Only Japan is behind the UK in terms of productivity among the G7, with UK’s private service sector, aside from finance, the main underperformers. There is no single remedy to address this but there are numerous factors that influence productivity and improving these could have a significant impact on the UK’s long-term economic performance prospects.
“Economic analysis we carried out early this year, highlighted an important correlation between the strength of a country's education system and its economic potential. Indeed the UK was deemed 'could do better' compared with its peers on education which means investment in the education system is one of the most effective levers the Chancellor can pull to boost the UK's long-term prosperity. Improving education and skills will give companies access to the workforce they need, and ensure our next generation can continue building a successful Britain.
“Another area which would have a major impact on UK economic growth and wealth is investment in infrastructure. According to our analysis, the UK could see real benefits from investing and upgrading its transport infrastructure in particular. For instance better regional rail links would allow workers to travel to areas where there is demand for their skills. Added to this, more flexibility on housing such as rethinking tax penalties on buying and letting property would give families greater freedom to move to areas where employers are seeking staff.“
For media enquiries, please contact:
Jess Liebmann, KPMG Corporate Communications
T: 0207 311 3245
M: 07551 135778
KPMG Press office
T: +44 (0) 207 694 8773
Follow us on twitter: @kpmguk
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.