Britain must boost productivity to complete post-crisis recovery, says OECD (International Business Times UK)

Head of Economic Research Adam Memon commented on the OECD’s report on the UK economy, for the International Business Times UK on Tuesday 24 February 2015. 

To read the full article, visit the International Business Times website.

“Adam Memon, head of economic research at the Centre for Policy Studies (CPS), shared some opinions with Philpott.

He told IBTimes UK that flagging productivity had been the “key” problem with Britain’s economic recovery.

“Despite the improvement in employment and economic growth, because productivity has not really increased at all since 2007, that means that real wages haven’t grown and tax revenues haven’t increased,” he explained.

“The OECD makes a point that this hasn’t really been a tax-rich recovery and that’s largely to do with productivity.”

The Paris-based thinktank also warned that Britain’s “very large” banks could pose a risk if they are not capitalised well.

In addition, the OECD said further “structural reforms” were required to boost competition in the small and medium-sized enterprise (SME) credit market and to increase credit provision to SMEs in the medium term.

“Smaller, faster growing companies haven’t really had access to capital, which is holding back investment and productivity,” Memon said.

“It’s an issue which is important for the next government to try to resolve because without that you aren’t going to get the proper investment that we need.””

To read the full article, visit the International Business Times website.

Date Added: Wednesday 25th February 2015