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AICPA and CIMA have set out a suite of policies which, if enacted by the new government elected on 5 July, will help address the country’s productivity and skills woes and help the next administration achieve its economic goals.
In a paper called ‘UK General Election 2024: Tackling the UK Productivity Puzzle’, AICPA and CIMA have drawn on their members’ expertise to outline the measures which could address the problem and lay the foundations for strong and sustainable economic growth.
The key recommendations in the paper are introducing an Independent Productivity Commission, akin to the Office for Budgetary Responsibility or the Bank of England in stature and independence, with responsibility for a national productivity strategy; providing a certain and stable tax environment and increasing productivity in the public sector, by improving the measuring and tracking of it.
One of the most important ways to improve productivity is by upskilling the workforce. AICPA and CIMA have looked at this issue and produced a second paper, “UK General Election 2024: Future Skills”, covering the policy changes required in this area.
They include changing the Apprenticeship Levy to an Apprenticeship and Skills Levy, introducing mandatory time off for training, and recognising and promoting accounting and finance as a STEM subject.
Andrew Harding, FCMA, CGMA, chief executive – management accounting at AICPA and CIMA, said: “After years of low growth, the UK is facing a productivity and skills emergency. Since the financial crisis our productivity growth has underperformed our international peers. This means we have experienced low real wage growth and stagnant GDP per capita.
“If the next government is going to solve any of the problems the country is facing, tackling poor productivity and skills shortages must be its top priority. It is the necessary first step for building an economy where real wages start to rise again, government debt can be put on a sustainable footing and public services can deliver what is expected of them.”
He added: “This will not just happen by itself. It will require serious and sustained action from the next government. This means putting in place a nationwide Productivity Strategy to drive improvements in every region, sector and business. An excellent place to start would be creating a Productivity Commission with similar powers to the Office for Budget Responsibility to plan and coordinate policy.”
