By international standards, the UK’s post-recession productivity performance has been poor. This ‘productivity problem’ is particularly acute in the north of England, and for the smaller businesses that make up over 99 per cent of the northern business population. Boosting the productivity of small businesses in the Northern Powerhouse could add as much as £23 billion per annum to the economy.
Policy for productivity must target both advanced industries and high-tech sectors, as well as the ‘everyday economy’ in which many small and medium-sized enterprises (SMEs) provide employment and support communities and places. This is important if productivity gains are to translate into higher wages and better living standards.
This report sets out the support that SMEs need to help them respond to wider challenges and opportunities in the UK economy, and recommends measures to boost northern SME productivity.
