Small and medium-sized enterprises in the most productive areas of the UK are producing almost 26 times as much turnover per worker as firms in the least productive areas, new research shows, underlining concerns about a productivity gap that is holding the country’s economy back. The study shows that productivity is highest in the South of England, with London taking the top three spots in the rankings. Generally speaking, locations in the North of England and Scotland tend to be less productive, the study shows, though hotspots exist all around the UK – Mid-Ulster, Newport and Barnsley are all high up the rankings, for example. Part of this means recognising local differences and improving data availability.”Nesta’s and Sage’s research provides a number of explanations for the productivity gap. Poor infrastructure, for example, may be an impediment to productivity in certain areas; low levels of skills in the workforce may be a factor elsewhere.

Source: Forbes October 27, 2017 14:15 UTC