UK must be tough to reverse productivity slippage, BCG says

LONDON, Feb 23 (Reuters) – British corporate sectors that once drove national productivity growth have fallen behind the global ​leaders and the government’s strategy for ‌improvement must be hard-edged, the Boston Consulting Group, a consultancy, said on Monday.

Policymakers should encourage “creative destruction” of firms that are barely surviving and ‌help ​workers to move to ⁠higher-growth areas, BCG said ⁠in a report.

Successive British governments have sought to fix the country’s weak productivity record. Prime Minister Keir Starmer has promised ​to reform planning rules and invest more in infrastructure.

BCG said in its ⁠report:

(Writing by ​William Schomberg)