Britain would enhance its economic system by £83bn if regional productiveness gaps had been simply halved.
Solely London and the South East outperform the nationwide productiveness common, with Wales, the East Midlands and Yorkshire and the Humber the lowest-productivity areas.
If the 10 most under-performing areas might every make up simply half their productiveness gaps with common UK productiveness, then UK GDP can be 4pc bigger, in line with PwC.
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Staff working in small companies account for 99.9pc of all enterprise staff, whereas SMEs account for 99.3pc of all corporations.
British output per employee although is between 10pc-15computer decrease than it’s in Germany, France and Sweden and greater than 30computer behind america, PwC mentioned.
Matching Germanys common productiveness would enhance the economic system by £180bn. per 12 months.
Corporations have to put money into workers coaching schemes, particularly whe it involves digital expertise, PwC urged, whereas the subsequent Authorities should put money into transport infrastructure.
John Hawksworth, chief economist at PwC, mentioned: We discover, for instance, 1pc improve in expertise is related to a 2pc improve in productiveness in a neighborhood space.
Britain has suffered a misplaced decade with regards to productiveness, which is outlined as output per hour labored and is the person driver of long-term financial development.
For the reason that monetary disaster of 2008, it has grown by simply zero.6pc per 12 months on common, in contrast with 2pc a 12 months earlier than the nice recession.
Proof means that this productiveness shortfall is because of low ranges of funding and R&D spending and an extended tail of corporations and staff with comparatively low productiveness and expertise, mentioned Alex Tuckett, senior economist at PwC.
Earlier this month, the Labour Get together introduced that it will be nationalising broadband and offering free entry partly as a way to enhance the UKs productiveness by £59bn a transfer broadly slammed by the Metropolis and telecoms operators however supported by London mayoral candidate Rory Stewart, for one.
Additional studying on productiveness
Ed Vaizey on productiveness: Community with different companies. Its what MPs do on a regular basis