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UK Productivity Growth Plummets: Chancellor Faces £20 Billion Shortfall

11/6/2025

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Summary

Story summary

UK productivity growth slowed after the financial crisis, averaging 0.4% annually from 2010–2023.
This contrasts with 2% growth from 1971–2009.
The decline stems from the financial crisis's effects, austerity, and Brexit on trade and investment.
Chancellor Rachel Reeves plans tax increases after the Office for Budget Responsibility (OBR) downgrades forecasts, potentially creating a £20 billion shortfall.

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Story summary

UK productivity growth slowed after the financial crisis, averaging 0.4% annually from 2010–2023.
This contrasts with 2% growth from 1971–2009.
The decline stems from the financial crisis's effects, austerity, and Brexit on trade and investment.
Chancellor Rachel Reeves plans tax increases after the Office for Budget Responsibility (OBR) downgrades forecasts, potentially creating a £20 billion shortfall.