A new report claims that the Bank of England (BoE) needs to set a three per cent productivity growth target in order to help drive economic growth in the UK.
The document, which was unveiled by the Labour Party in recent days, sets out the Shadow Chancellor’s view regarding what the UK should do in order to boost the economy ahead of Brexit.
It makes a number of recommendations for major institutional reform, in a bid to reshape the British finance system in ways the Party claims will substantially increase productivity in the years ahead.
Specifically, Labour’s Financing Investment report claims that:

• The BoE should preserve its operational independence and focus on a three per cent productivity growth target.
• The Government should work closely with the BoE to ensure this target is met.
• The BoE should update the public on its progress in this area after each Budget.
• The BoE should expand its ‘policy toolkit’ in order to include credit guidance and greater use of macro prudential policy, which would sit alongside existing monetary policy.

The report adds that a new BoE office should be established in Birmingham in order to improve ‘institutional priorities’ outside of Britain’s capital.
It also claims that a Strategic Investment Board (SIB) should be set up in order to deliver the Government’s industrial strategy and that greater financing opportunities are needed for small and medium-sized enterprises (SMEs).
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