UK productivity fell to pre-financial crisis levels in the first quarter, as political and economic uncertainty impacted on yet another key figure.
Hourly output fell by 0.5 percent, figures from the Office for National Statistics (ONS) showed on Wednesday, 0.4 percent below the figure seen at the end of 2007.
ONS head of productivity Philip Wales said: “UK labour productivity growth has struggled since the 2008 economic downturn, and the fall in the first quarter of 2017 brings to an end a recent run of quarters of positive growth.”
Commenting on the figures Paul Marston, Managing Director of RateSetter Commercial Finance, said: “It is no wonder productivity has fallen over the last decade, given that the banks have cut off lending to small businesses which are the powerhouse of the economy.
The good news is that credible alternatives to the banks have now become significant and accessible sources of finance for small businesses and momentum is continuing to grow. We are passionate about supporting ambitious businesses to invest, raise their productivity and grow.”
According to analysis from Sky News, Britain’s productivity has not suffered so badly for over two centuries. Britain’s economy is currently experiencing its least productive decade since the era of George III, when was engaged in the Napoleonic wars.