UK’s Business Secretary, Sajid Javid, will today launch a report which analyses how productivity is measured in the UK and recommends means of modernising the country’s economic health measurements.
The report, entitled ‘The Sharing Economy in the UK’ is commissioned by the UK sharing economy trade body, Sharing Economy UK (SEUK) and Airbnb. It was authored by economist Diane Coyle and looks at how productivity impacts the sharing economy.
“UK policymakers are global leaders in encouraging the growth of the sharing economy and sharing microentrepreneurs,” said Debbie Wosskow, Chair of SEUK. “We know that the way Britain works is changing, driven by technology, a blurring of the lines between work and home, and modern attitudes about formal work, side-projects and freelancing. Yet, we also know that the UK’s productivity levels are some of the worst in Europe. This is why SEUK and Airbnb approached Diane Coyle, asking her to investigate the link between the UK’s sharing economy, productivity and economic measurement.”
The report’s author, Diane Coyle, says current measures of productivity can’t capture the economic impact of the sharing economy adequately, because GDP figures don’t consider economic benefits of things like time saved, increased choice and lower production costs.
“In order to modernise economic statistics, this report argues that changes be made to ONS data collection, in order to fully understand the scale and impact of the sharing economy,” she said.
This report is closely related to the Government’s Productivity plan that wants to fix UK’s productivity problem.