23 November 2016 | Herpreet Kaur Grewal
In today's Autumn Statement, Chancellor of the Exchequer, Philip Hammond, announced government plans to form a new national productivity investment fund worth £23 billion.
Hammond told MPs in the House of Commons that "raising productivity" in the UK was "essential" as the UK still lagged behind the US, Germany, France and Italy.
This means it takes a German worker four days to make what a British worker makes in five, he said.
The new fund will focus on innovation, infrastructure, research and development.
Investment in R&D will rise by £2 billion a year by 2020, he added.
Potential growth of the UK economy is likely to be 2.4 per cent points lower because of Brexit uncertainty.
He said the UK labour market was predicted to remain "robust" despite the uncertainty, adding that the Brexit decision made it more important than ever to tackle the economy's weaknesses.
The "national living wage" will increase from £7.20 per hour to £7.50 in April next year.