Background paper

Background paper: Labour productivity growth in the Treasury's fiscal projections

This background paper accompanies the Half Year Economic and Fiscal Update, which was released on 11 December 2019.

It reviews a range of factors influencing the labour productivity growth assumption in the Treasury's Fiscal Strategy Model (FSM) and the Long-Term Fiscal Model (LTFM). This assumption is relevant for both the regular FSM fiscal projections prepared alongside the Economic and Fiscal Update (EFU), and the Long-Term Fiscal Statement (LTFS), due in 2020, which uses the LTFM.