Source · Select Committees · Treasury Committee
Recommendation 7
7
Acknowledged
Paragraph: 59
Post-pandemic scarring seems likely to be much less of a problem than first feared.
Conclusion
Post-pandemic scarring seems likely to be much less of a problem than first feared. But there are still risks, especially outside the labour market, that need Government attention. Notably, these include the long-term legacy of interruptions to education. Business indebtedness might also be a factor restraining investment and should be monitored carefully.
Government Response Summary
The government acknowledges that productivity growth has slowed and is monitoring issues exacerbated by the pandemic, such as business indebtedness and individuals withdrawing from the labour market, and states that it has announced a package to reform and invest in the key supply side drivers of productivity gains.
Paragraph Reference:
59
Government Response
Acknowledged
HM Government
Acknowledged
Productivity growth has slowed in the UK since the Global Financial Crisis. As the report raises, this issue was exacerbated by the COVID19 pandemic and the public health measures in response, such as businesses indebtedness and individuals withdrawing from the labour market. The government continues to monitor these. Increasing productivity is vital for accelerated and sustained economic growth and that is why government has announced a package to reform and invest in the key supply side drivers of productivity gains.