'˜Vague collection of policies' is MPs' verdict on Osborne's productivty plan

MPs have criticised George Osborne's productivity plan

Their report criticised the lack of timescales or targets in the plan, launched by the Chancellor last year, and the failure to consult with business.

The Business Innovation and Skills Committee expressed particular concern that the Government is moving from grants to loans in supporting research and development and asked ministers to explain how they came to decide industry needs three million apprenticeships.

Mr Osborne has repeatedly emphasised the importance of tackling Britain’s long history of poor productivity levels in strengthening the economy.

Committee chairman Iain Wright said: “n recent years other countries have stormed ahead with productivity gains and we need to catch up. As a committee we welcome the Government’s focus on tackling this crucial issue for the UK economy.

“However, rather than being a clear and distinctive roadmap as to how Britain will close our productivity gap, the Productivity Plan is a vague collection of existing policies.

The analysis in the Government’s Plan is good, but the milestones for implementing improvements are virtually non-existent. If the Productivity Plan is going to avoid collecting dust on Whitehall bookshelves and having a legacy of being seen as worthy but useless, then the Government needs to back it up by setting out how these policies are going to be implemented and how their success will be measured.”

A spokesman for the Department for Business, Innovation and Skills said: “Through successive governments our country has struggled with keeping productivity on track. Only by stabilising the economy since 2010 can we really tackle this head-on. We are now seeing a return to productivity growth. Output per hour grew by 0.5% in the third quarter of 2015, and was 1.3% higher than the same period in 2014.

“The reforms set out in our productivity plan are delivering a step change that will secure long term investment in people, capital and ideas. As the select committee notes, boosting productivity is not as quick and simple as pulling a lever.”