The policy and productivity conundrum for the new Labour government

PROFESSIONAL INVESTORS
Visit
05.07.24

Fiscal policy will likely remain tight in the coming years, with the deficit gradually decreasing. Although Labour's new policies are neutral for the deficit, they follow existing tightening measures announced by the previous government, which imply real-term cuts to spending and higher real-term taxation via tax threshold freezes.

Productivity growth in the UK has been declining for decades, more so than in many other developed countries. Improving productivity is a challenge, not least because the causes of this secular decline are not entirely clear.

Related Topics

Politics
Macroeconomics
Markets

Other content you may find interesting

Professional Investors

09 April 2026

Japan's growth progress hidden behind geopolitical headlines

Are investors overlooking the country’s reforms?

Visit

Professional Investors

12 February 2026

Japan's Takaichi wins big in snap election

The Prime Minister now faces the task of converting political capital into market credibility.

Visit

Professional Investors

13 January 2026

Geopolitical uncertainty rises as Venezuela enters transition

What will markets be monitoring over the longer term?

Visit

< Back to search results

Your Privacy - Please read carefully
We set out below how we will communicate with you. We explain how we use your data in our Privacy Policy. When you download content from this website which is published by one of our sponsoring partners we, Incisive Media*, will identify that sponsoring partner to you at the time and will use the lawful basis of 'legitimate interests to pass on your contact details to them. They will contact you direct and their use of your data will be governed by their privacy policy. You can see the full details of our Privacy Policy here. Additionally we will use the lawful basis of 'legitimate interests' to use one or more of your various contact details supplied to contact you regarding our publications, reader research, events and other relevant information from ourselves or third parties. You will always be offered the option to change your contact preferences. Please note that if you are a sole trader or other partnership, you will not receive information regarding Incisive Media's other brands or from third parties until such time as we have your consent.

Yes, I understand and accept the Terms and Conditions and Privacy Policy.

please accept terms and conditions