Responding to latest official figures, showing labour productivity fell for the third successive quarter, Tej Parikh, Chief Economist at the Institute of Directors, said:

“The UK’s dire productivity performance shows no signs of letting up.

“With political risks clouding business decisions, firms have lacked the confidence to invest in the equipment and technology that drive efficiency gains in their organisations. Even if the clouds of uncertainty do lift later this year, it will be a while before pent-up investment activity filters through to the productivity numbers.

“While the Conservative leadership candidates’ Brexit and personal tax policies have grabbed the headlines, business leaders also want to see urgent progress on our skills agenda, infrastructure, and business support. Boosting the UK’s productivity growth is the only way to deliver long-lasting increases to wages and living standards across the country.”