Experts call for significant changes in order to 鈥榣evel up鈥� the country
The Government needs to decentralise the UK鈥檚 decision-making structures and invest in skills if it is to achieve its 鈥榣evelling up鈥� ambitions, according to a new publication from The University of 野狼社区.
The UK has huge regional disparities in productivity - while London and much of the south-east compare well with other places in Europe, Greater 野狼社区 and many other regions lag far behind. In 2016, Greater 野狼社区鈥檚 productivity was 89% of the UK average, falling from 92.2% in 1998.
鈥淭he promise to level up the UK was one of the flagship pledges made in the 2019 Conservative manifesto,鈥� says Gemma Tetlow, Chief Economist at the Institute for Government, in the foreword of On Productivity. 鈥淭his pledge tapped into a longstanding sore in British society 鈥� the stubborn gap in economic performance and many other measures of prosperity between different parts of the UK.鈥�
As the chapters in this report demonstrate, addressing gaps in productivity across the country is likely to entail a wide variety of policy levers 鈥� from policies to boost skills and health to changes to governance structures. It will also require central government working constructively with subnational governments and the private sector.
Professor Richard Jones states that there is an opportunity to address this disparity, calling the and the recent Levelling Up White Paper 鈥榚ncouraging鈥�. However, he notes that while Innovation Accelerators - including one centred on Greater 野狼社区 which 鈥渙ffers the chance to inject a new, place-led dimension into innovation policy鈥� 鈥� are promising, these kinds of initiatives must be extended to other places in order to improve regional productivity.
Professor Jill Rubery writes that 鈥淐asting a gender lens on the productivity debate reveals that a simple focus on productivity will not meet the needs of women or those of poor households,鈥� and adds that 鈥淎 key issue is whether these policy agendas will address the underutilisation of women鈥檚 potential and the undervaluation of women鈥檚 work鈥he white paper hardly mentions gender except in relation to healthy life expectancy, where women for once do better than men.鈥�
Skills are vital for improving productivity, and Professor Andrew Westwood comments that 鈥淚f the government wants to 鈥榣evel up鈥� and 鈥榯ransition to a high productivity economy鈥�, it has to enable places to shape the skills system according to their own particular needs.鈥� He points out that weaker local economies tend to have significantly lower levels of skilled people - ONS data shows that Oldham, for example, has just over half the number of people with high skills as Trafford (28% compared to 51%) and twice as many adults without any qualifications at all.
Professor Dave Richards asks whether 鈥渢he UK鈥檚 system of governance is as much part of the problem as the solution to anaemic productivity鈥�, adding that 鈥渨holesale reform not only requires the bolstering of powers downwards, but also overhauling the scale of powers and centralised decision-making claimed by the Westminster government.鈥�
Other recommendations within the report focus on the importance of social value in public procurement, on the green recovery and the potential of the North West, and the importance of an appropriate digital transformation in order to create a technologically diverse, sustainable and productive economy.
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