Public Sector Productivity 2026-09-08
2026-09-08
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Jeremy Hunt is questioning the government's [12D [K government's approach to improving public sector efficiency, particularly i [1D [K in the context of the NHS and the broader public sector's impact on nationa [7D [K national productivity.
What steps he is taking to improve public sector [K productivity. Public sector productivity is crucial given its 20% share of [K national output, offering significant opportunities for improvement. He spe [3D [K specifically mentions the NHS achieving 3.5% productivity growth in 2025-26 [7D [K 2025-26, exceeding the 2% target. He also raises concerns about the Avanti [K West Coast train drivers receiving an above-inflation pay rise without prod [4D [K productivity gains.
Public sector productivity is improving, with the N [1D [K NHS delivering 3.5% productivity growth in 2025-26, beating its 2% target. [K The Government will continue to drive public sector efficiency so that taxp [4D [K taxpayers' money delivers the best possible public services. In addition, w [1D [K we are investing in AI adoption across the public sector to help realise th [2D [K the overall target of £14 billion of efficiencies by 2028-29, as agreed at [K the last spending review.
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Assessment & feedback
The questioner specifically asked about tying abo [3D [K above-inflation pay rises to productivity gains, but the answer did not add [3D [K address this point.
We Are Proud To Have Avoided Strikes
Response accuracy
Q2
Partial Answer
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Context
Jeremy Hunt questions the Chief Secretary t [1D [K to the Treasury on the public sector's productivity and the impact of pay r [1D [K rises for train drivers without productivity gains, given the current fisca [5D [K fiscal constraints.
May I welcome the Chief Secretary to the Treasury [8D [K Treasury to her new role? If she has any questions, may I recommend an exce [4D [K excellent book by a former Chancellor, which has a number of tips? The publ [4D [K public sector is 20% of our national output, so it offers a major opportuni [9D [K opportunity for the Government to improve our national productivity. Was it [2D [K it wise to give the ASLEF train drivers on the Avanti West Coast route an a [1D [K above-inflation pay rise without any apparent productivity quid pro quo? Wi [2D [K With the public finances so tight, should the rule not be that above-inflat [12D [K above-inflation increases must have productivity gains sitting alongside th [2D [K them?
We in the Treasury Front-Bench team are wondering w [1D [K when the third book in the trilogy will come along and what it might be cal [3D [K called. We have a guess for the title of the next book. I thank him for his [3D [K his advice in his books and in his recent Financial Times article. On train [5D [K train drivers and their pay, I am proud to be part of a Government who have [4D [K have avoided strikes that impact on public spending.
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Assessment & feedback
The questioner asked about the wisdom of granting [8D [K granting train drivers an above-inflation pay rise without productivity gai [3D [K gains, but the answer did not address this issue and instead focused on avo [3D [K avoiding strikes.
We Are Proud To Have Avoided Strikes
Response accuracy
Q3
Partial Answer
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Context
Public sector productivity is improving wit [3D [K with the latest Office for National Statistics figures showing output conti [5D [K continuing to grow faster than inputs, and Departments being challenged to [K improve efficiency and modernise outdated processes.
Public sector productivity is improving, with the [3D [K the latest Office for National Statistics figures showing output continuing [10D [K continuing to grow faster than inputs, and Departments being challenged to [K improve efficiency and modernise outdated processes. Can the Minister confi [5D [K confirm that the Government expect that will have a positive impact for res [3D [K residents in Feltham and Heston and people across the country, ensuring tha [3D [K that Government services are faster, better and easier to access?
I could not agree more with my hon. Friend. Driving [7D [K Driving public sector productivity is extremely important in two ways: firs [4D [K first, because we get better value for money for taxpayers for the tax that [4D [K that people are putting in, including taxpayers in our own constituencies; [K and secondly, as she says, we are driving efficiencies, faster service deli [4D [K delivery and using AI in the NHS to really drive improvements in care, as w [1D [K well as delivering more bang for buck.
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Assessment & feedback
The Minister did not confirm a specific positive [K impact for residents in Feltham and Heston or people across the country, an [2D [K and did not provide a concrete timeline or mechanism for delivering faster, [7D [K faster, better, and easier access to Government services.
Response accuracy
Q4
Partial Answer
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Context
Commentators have highlighted that public s [1D [K sector productivity underperformance has cut GDP growth by 3% since 2019. T [1D [K The Institute for Government notes an average of nearly 1% underperformance [16D [K underperformance every year for the same period. Morgan Stanley points out [K that private sector productivity increased by 1.8% last year, but public se [2D [K sector underperformance dragged it into negative territory. Public sector p [1D [K pay increased over 6% last year, compared to private sector pay up just 2.8 [3D [K 2.8%.
Many commentators have commented about public sec [3D [K sector productivity underperformance. EY tells us that the public sector ha [2D [K has underperformed to the point where it has cut GDP growth by 3% since 201 [3D [K 2019. The Institute for Government highlights an average of nearly 1% under [5D [K underperformance every year for that same period. Morgan Stanley reminds us [2D [K us that in the last year private sector productivity was up 1.8%, but publi [5D [K public sector underperformance dragged it back into negative territory. Des [3D [K Despite that, public sector pay was up over 6% last year, against private s [1D [K sector pay up just 2.8%. Why are the Government rewarding poor performance [K and does the Chancellor think that is sustainable?
I can reassure the hon. Gentleman that we are focus [5D [K focused on driving public sector productivity to reach the efficiency targe [5D [K targets I talked about. We are holding each Department to account on that. [K As I said earlier, we are seeing great progress in the NHS, which is making [6D [K making a huge contribution to our productivity gains as a Government.
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Assessment & feedback
The Minister did not address why the Government a [1D [K are rewarding poor performance or provide a stance from the Chancellor on t [1D [K the sustainability of the current approach.
Response accuracy