The Investment Association has today unveiled its plans to boost the UK's productivity through long-term investment.
Among the Productivity Action Plan's key areas of focus for removing barriers to long-term investment are improving investor engagement, enhancing company reporting to better show to what extent firms are contributing to the economy and contributing more to the debate on tax and regulation with the aim of simplifying the system's treatment of long-term financing.
The Plan has been welcomed by government and the Investment Association will update the chancellor of its progress at regular intervals.
"Fixing the UK's productivity puzzle is a difficult task and the solutions are far from simple," said Andrew Ninian, director of corporate governance at the Investment Association. "This is a challenge that affects every corner of society and calls for a multifaceted response from the UK's leading business and economic stakeholders. We hope this Action Plan plays a part in improving UK productivity."
Lord O'Neill, commercial secretary to the Treasury, added: "Long-term investment is crucial to our plans to boost productivity. We need investors who are willing to back businesses that take this approach, whether it's building a new factory or creating an exciting new product."
Meanwhile, Melanie Mclaren, executive director codes & standards at the Financial Reporting Council (FRC), remarked: "Improving the UK's productivity is a key challenge for the nation's future prosperity. The Investment Association's proposals to increase the attractiveness of the UK market to global capital inflows are closely aligned to the FRC’s core purpose and so we very much welcome them."
Figures released from the Office for National Statistics late last year showed that the UK lagged behind all of its G7 counterparts, with the exception of Japan, for productivity measured as GDP per hour worked.