Streeting – Brexit confusion to blame for fall in productivity

Commenting on the news today that UK productivity fell in Q2 2017, its second consecutive quarterly fall, Wes Streeting MP, leading supporter of Open Britain, said: 

“It’s clear the confusion caused by Brexit is having a real impact on our economy. Investment is stalling, as the Chancellor has said, and firms are faced with damaging uncertainty over our future trading relationship with the EU and their ability to recruit European workers. This is bound to have a negative impact on productivity, as the OBR said last year.

“With every move this incompetent and divided Government makes, businesses and investors lose confidence in our economy. That will continue the decline in productivity and make us all worse off.

“To restore certainty and get our economy moving again, it is vital that the Government guarantees the rights of EU citizens living in Britain, and rethinks their disastrous decision to put our trade with Europe at risk by leaving the Single Market and the Customs Union.”

/ends

Notes to editors:

In November 2016, the Office for Budget Responsibility said: “The referendum result and forthcoming post-Article 50 negotiations have generated uncertainty for firms that will lead to some investment being postponed or cancelled. We have revised business investment down relative to our March forecast in all years, which also reduces trend productivity growth due to slower capital deepening.”

Source: http://budgetresponsibility.org.uk/efo/economic-and-fiscal-outlook-november-2016/