The business investment race and how the tax system can help the UK to catch-up

The global financial crisis and subsequent recession of the late 2000s precipitated a sustained stagnation of productivity growth in the UK and an unprecedented economic phenomenon in the post-war era. Productivity growth matters since it leads to more sustainable growth, better standards of living, and greater global competitiveness. For businesses, productivity matters because it determines how much they can pay their staff, how quickly they can grow and what they can invest in. This means that productivity growth is not only the key to long-term growth but is also needed to drive sustainable increases in pay and better opportunities for everyone in our society.