£56 million to boost business productivity

5 Nov 2019 12:48 PM

Businesses around the country are set to benefit from government-backed funding schemes to boost productivity.

Businesses will benefit from a £56 million funding boost to drive up productivity across the UK economy, Business Minister Kelly Tolhurst announced today (Tuesday 5 November).

The funding, announced at Budget 2018, supports the findings of a joint report by the Department for Business, Energy and Industrial Strategy (BEIS) and HM Treasury, published today, which sets out 10 key actions that will support businesses to become more productive. It finds that businesses of all sizes that embrace the best leadership and management models and techniques, as well as adopting tried-and-tested technologies, are more profitable, productive and are better to work for. The review advises businesses to:

To drive this forward, the support being made available to businesses includes:

The UK has some of the world’s most productive businesses and has a strong business environment with up to 1,075 businesses starting every day. The UK ranks as one of the best places in the world to start and grow a business.

Small Business Minister Kelly Tolhurst said:

We are determined to make the UK the best place to work and start a business – and boosting productivity is key to that. As a former small business owner, I know how important it is to harness technology to make your business more productive and our review sets out crucial actions that businesses can take to boost their own productivity.

This £56 million of government funding will help businesses of all sizes seize the opportunities of scaling up in new markets when we leave the EU.

Simon Clarke, Exchequer Secretary to the Treasury, said:

We have created one of the most attractive business environments in the world with low taxes and our commitment to invest an additional £7 billion in R&D to unlock talent and opportunity. However, it’s vital we do everything we can to help improve the UK’s long-term productivity.

The Business Productivity Review forms a crucial part of our efforts to boost UK productivity and unlock the potential of people and places across UK.

Sir Charlie Mayfield, Chairman, Be the Business and John Lewis Partnership said:

Boosting business productivity is the single biggest issue facing the economy so I applaud the government’s commitment to working with business to boost the UK’s competitiveness.

Today’s Business Productivity Review is an important next step in the direction set by the Industrial Strategy. Getting the economy match fit for the decade ahead requires business leaders to work smarter, not harder, so I welcome the Review’s focus on firm-level change especially in developing leadership and technology adoption.

Industry Co-Chair of the Professional & Business Services Council and UK Chair Deloitte LLP, Nick Owen, said:

The Professional & Business Services Council (PBSC) welcomes the release of the government’s Business Productivity Review (BPR). It is vital for a growing and competitive UK economy that business and government collaborate to close the productivity gap. The PBSC looks forward to exploring how it can work with government on the BPR’s recommendations in support of driving greater UK productivity and SME growth.

In addition to the Review, the government has previously committed £9 million over 4 years for the Business Basics programme to test and evaluate new and innovative ways to support small businesses to improve their productivity. The latest round of funding is open until Wednesday 4 December.

The government also provides up to £18.6 million of funding to Be the Business to help SMEs better understand the simple changes they can make to raise their productivity levels by adopting best practice leadership and management techniques and making use of tried and tested technologies.

Today’s Review and announcement of government-backed schemes to boost business productivity comes after a £88 million government investment, announced on 10 October, to support top researchers and analysts to explore how to turbocharge UK productivity levels as well as develop cutting-edge supercomputer software.

Notes to Editors

About the Business Productivity Review

About Be the Business