UK Faces prolonged wage and productivity gap - New strategy urged to reverse 15-year decline
• UK has seen 15 years of falling living standards and worsening inequality compared to other rich economies • Productivity growth half that of peers, costing workers average of £10,700 a year in lost pay • Report calls for new economic strategy to reverse trend • Recommendations include focus trade policy on services, boost transport investment in cities, increase public investment • Tax incentives should target young firms and support business risk-taking