4th quarter of productivity falling – John McDonnell responds
John McDonnell MP, Labour’s Shadow Chancellor, responding to four successive quarters of negative productivity growth, said:
“This is an absolutely damning indictment of successive Tory governments’ appalling record on productivity.
“With our economy shrinking last quarter, business investment tumbling, and scandal after scandal in the finance sector, it’s clear that the Conservatives cannot be trusted on the economy.
“A Labour Government will invest in our public services, establish a National Transformation Fund, and set up a National Investment Bank, to boost our economy and tackle the productivity crisis so badly neglected by the Tories.”
Notes to editors
The ONS productivity flash estimate shows that output per hour fell by 0.6% in Q2 2019 compared to the same quarter in the previous year, a much bigger decrease than the decrease in Q1 2019: https://www.ons.gov.uk/economy/economicoutputandproductivity/productivitymeasures/articles/gdpandthelabourmarket/apriltojune2019. The ONS has confirmed that this is the fourth consecutive quarter of negative quarter-on-year growth rates.
Analysis by the New Economics Foundation released yesterday pointed to increasing evidence that a lack of business investment explains the UK’s poor productivity performance, and noted the need for public investment as a solution to flagging productivity: https://neweconomics.org/uploads/files/NEF_PRODUCTIVITY-2019.pdf