Productivity and economic growth were just some of the major themes pervading the agenda at the 43rd G7 summit last weekend.
Italy, who played host to the annual gathering of leaders from the world’s most developed economies, was keen to push the notion of social equality. Despite the UK being part of the elite seven, it lags significantly behind its peers in terms of productivity and living standards.
ACCA (the Association of Chartered Certified Accountants) believes a number of key factors will help solve the missing pieces of the UK’s productivity puzzle.
Necessity of international and domestic investment
Inward investment, whether foreign or domestic, is instrumental in both jumpstarting and building on activity within business communities.
A recent uplift in productivity has mostly come from a rise in employment, more so than improved efficiency of the existing workforce. Digitisation and greater telecommunications capabilities will also widen the talent pool of remote workers from which recruiters can source talent.
Consistency between the regions
The UK’s North-South productivity divide is a well-established concern, sparking the previous Chancellor, George Osborne’s ‘Northern Powerhouse’ campaign in the last government.
Changing the way we measure productivity
Tracking productivity should look beyond traditional measurements, such as new ways of working and the quality of the outcomes and output, which would provide a more accurate picture.
ACCA’s head of UK, John Williams, says:
‘Fixing the productivity puzzle is vital for increasing the UK’s economic growth. The UK’s position has improved in recent years, but we can be by no means complacent. We have some serious catching up to do with the rest of our G7 colleagues if we are to increase people’s incomes and enhance living standards.
‘Britain needs to establish a global high-tech innovative image of itself to attract international investment, global trade partners and world-class skilled workers. Thinking ahead and adapting to modern trends, will allow the UK to meet and exceed global productivity performance in boosting the country’s growth.’
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Chanel Townsend, ACCA Newsroom
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Notes to Editors
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
ACCA supports its 188,000 members and 480,000 students in 178 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 100 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers. More information is here: www.accaglobal.com