How Manchester hopes to influence Rachel Reeves to boost UK productivity

A new think tank has been launched in Manchester hoping to influence Chancellor Rachel Reeves and the new Labour government’s efforts to boost productivity across the UK.

The Productivity Institute, which is based at the University of Manchester, has set up a policy unit with the aim of ‘informing and influencing’ the likes of Reeves.

The move comes after Reeves identified productivity as key to raising UK economic growth back to levels not seen since the 1990s.

In recent weeks, the Labour government has been criticised by sections of the business community for its downbeat rhetoric and rumours of punitive tax hikes in the upcoming budget.

The new unit will be led by five professors including Diane Coyle, TPI MD Bart van Ark and headed up by Andy Westwood. It will also be supported by a further eight policy fellows and four research associates.

As an opening salvo, the unit’s first paper argues that the government’s industrial strategy must focus on net zero, only selecting sectors with potential and work to boost “regional laggards”.

It adds that if it is too wide then the Industrial Strategy Council “will find it impossible to monitor”.

‘Rigorous, united, focussed and ruthless’ action need from Rachel Reeves

Professor Andy Westwood, policy director at The Productivity Institute and lead of the Unit, said: “The new government has rightly identified economic growth, net zero and the NHS as core tenets of our future prosperity.

“But we won’t markedly improve on any of those areas without addressing our deep-rooted productivity challenges.

“Productivity needs to be at the heart of all decision making on the economy in Whitehall.

“Our unit is designed to ensure policymakers have the information needed at their disposal to make long-term decisions that improve our productivity and lay the foundations to achieve economic growth.

“What’s needed now is action from the government that is rigorous, united, focussed on delivery and ruthless about what isn’t working. We stand ready to provide the support it needs to do that.”

‘This is an exciting time for the UK’s economy’

Professor Dame Diane Coyle, researcher lead at The Productivity Institute and Bennett Professor of Public Policy at the University of Cambridge, added: “The scale of the productivity challenge has been laid bare over the past 15 years as growth lagged other developed countries.

“Now is the time to address that with informed, joined-up policy making that puts sustainability, regional prosperity and skills front and centre of debate. 

“This is an exciting time for the UK’s economy. The size of the challenge is only matched by the opportunity for growth on offer.

“We know how important it is to engage with policymakers and ensure their questions are answered on how best to put productivity at the heart of policy.

“The unit will ensure they have the data, research and insights needed to inform policy to accelerate productivity growth.”