Example: biology

OECD Economic Surveys United Kingdom

OECD Economic Surveys United Kingdom October 2017 OVERVIEW This Overview is extracted from the 2017 Economic survey of United Kingdom . The survey is published on the responsibility of the Economic and Development Review Committee (EDRC) of the OECD, which is charged with the examination of the Economic situation of member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area OECD Economic Surveys : United Kingdom OECD 2017 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations.

OECD Economic Surveys United Kingdom October 2017 OVERVIEW www.oecd.org/eco/surveys/economic-survey-united-kingdom.htm

Tags:

  Economic, Code, Survey, Oecd economic surveys

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of OECD Economic Surveys United Kingdom

1 OECD Economic Surveys United Kingdom October 2017 OVERVIEW This Overview is extracted from the 2017 Economic survey of United Kingdom . The survey is published on the responsibility of the Economic and Development Review Committee (EDRC) of the OECD, which is charged with the examination of the Economic situation of member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area OECD Economic Surveys .

2 United Kingdom OECD 2017 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at or the Centre fran ais d exploitation du droit de copie (CFC) at OECD Economic Surveys .

3 United Kingdom OECD 20179 Executive summary Securing higher living standards requires a revival in labour productivity Reducing regional discrepancies to support aggregate productivity growth Raising competencies of low-skilled workers to make the economy more productiveand inclusiveEXECUTIVE SUMMARYOECD Economic Surveys : United Kingdom OECD 201710 Securing higher living standards requires a revival in labour productivityAfter a good performance until 2016, growth slowed in thefirst half of 2017. The unemployment rate has fallen tobelow , but real wages are in a downward labour productivity growth is key to ensuringhigher living standards.

4 Planned departure from theEuropean Union (Brexit) has raised uncertainty and dentedbusiness investment, compounding the productivitychallenge. Negotiating the closest possible EU-UK economicrelationship would limit the cost of exit. The authoritiesshould allow automatic stabilisers to work and identify inadvance productivity-enhancing fiscal initiatives oninvestment, to be implemented rapidly were growth toweaken significantly in the run-up to Brexit, whilesafeguarding fiscal sustainability. A tax and spending reviewwould enlarge fiscal space for further productive regional discrepancies to support aggregate productivity growthRegional labour productivity is weak outside GreaterLondon and South East England.

5 Policy packages buildingon existing strengths of lagging regions, and possiblydeveloping new ones, should foster local and regionaltransport infrastructure, research and development,housing and skills. This would increase the economicbenefits from national infrastructure projects. Sustaininghigh integration in global value chains would bolstergoods-oriented regions. Services-oriented regions wouldbenefit from services trade liberalisation and moreintegrated cities. Devolution should continue to bettertailor policies to local needs and more co-ordination intransport plans across city-regions would help creatinglarger Economic competencies of low-skilled workers to make the economy more productiveand inclusiveOver a quarter of workers in the United Kingdom haveonly low skills, which holds back labour productivity andjob quality.

6 Raising skills is a priority given plans toreduce net migration. The government has started tosimplify vocational education and training and to raisethe number of apprenticeships financed with a levy onlarge businesses. Enhancing teachers training and otherincentives, in particular in disadvantaged schools,would address teacher shortages. Low-skilled workersparticipate less in lifelong learning and introducingtargeted re-training programmes would boostcompetencies more broadly. Tax and regulatory reformsof non-standard forms of employment would offsetworkers weaker bargaining power and ensure betterjob productivity has stalledReal GDP per hour worked, in constant 2010 USD PPPS ource:OECD (2017), GDP per capita and productivity levels ,OECD Productivity Statistics(database), 2 KingdomG7 OECDR egional disparities in productivity are highNominal GVA per hour worked, in GBPS ource:ONS (2017), Regional and sub-regional productivity in theUK.

7 Jan 2017 , Office for National Statistics, 2 LondonSouth East EnglandAverage across regionsNorthern IrelandWalesRegional productivity and education are linkedQuarters of regions by productivity levels, 201411. Quarters are calculated as un-weighted :OECD (2017),OECD Regional Statistics; and ONS (2017), Regional and sub-regional productivity in the UK: Jan 2017 , Officefor National 2 quarter2nd quarter3rd quarterBottom quarter24262830323436151617181920 GVA per hour worked, in GBP Share of labour force with only elementary education, %EXECUTIVE SUMMARYOECD Economic Surveys : United Kingdom OECD 201711 MAIN FINDINGSKEY RECOMMENDATIONSM acroeconomic and trade policiesFiscal space has risen with a fiscal buffer of 1 % of GDP relativeto the structural deficit target of of GDP by 2020 whilemonetary space is the automatic stabilisers to work fully and identify inadvance productivity-enhancing fiscal initiatives on investmentthat could be implemented swiftly (such as spending on repairand maintenance or soft investment)

8 , should growth weakensignificantly ahead of tax system favours self-employed people over employees andthe indexation of state pensions is a tax and spending review to allow for additionalproductivity-enhancing fiscal initiatives, for example by:Raising national insurance contributions for the self-employed;Indexing the state pension on average earnings consumer debt growth, coupled with stagnant householdincomes, is a major financial stability debt-to-income ratios for borrowers depending on theirexposure to exit from the European Union would hurt tradingrelationships, reducing long-term the closest possible Economic relationship between theUnited Kingdom and the European regional convergence in productivityProductivity growth has been stagnant and there are productivitydifferentials across sectors and integrated.

9 Regionally focused policy packages based oncurrent and emerging regional strengths. Prepare impactassessments of the EU departure and climate change transport infrastructure investment outside the south ofEngland may have created bottlenecks, holding back agglomerationeffects and associated productivity the recently created strategic planning and deliveryagencies for transport infrastructure to achieve a stable and moreefficient long-term investment in improving inter- and intra-city transport links wheresuch investments can foster agglomeration effects and unlockrelated productivity governments have limited fiscal autonomy.

10 On bothspending and supply is not responsive enough to decentralisation by concluding deals with all local authorities to retain more revenues from locally leviedproperty and development (R&D) is low, holding back innovationand its diffusion across regions, in particular in the least to increase direct and indirect support for private andpublic R&D, and for the collaboration between businesses anduniversities to promote applied innovations and their regions find it difficult to attract or retain skills. Teachershortages are high and retention rates are low, mainly at thesecondary level.


Related search queries