Public Sector Productivity

Lord Kakkar Excerpts

Wednesday 7th January 2026 Lords Chamber

[Lord Livermore (Lab)]

I do not agree with that. On a point of fact, the noble Baroness mentions NHS productivity. The latest figures from the NHS show that NHS productivity has grown by 2.4% in April to July 2025 compared to the same period last year. Once again, the noble Baroness criticises the fact that we are seeking to pay the public sector workforce properly. She will be aware that a workforce that is efficient and well rewarded is essential to increasing productivity—she always talks about the need for increased productivity, but she never backs the measures that actually go to deliver it. I hope that the noble Baroness will recognise some of the measures that this Government are taking. At the spending review, the Government established a programme of public service reform to drive greater productivity. As part of that, the Office for Value for Money worked closely with departments to identify £14 billion of efficiencies. The noble Baroness did not mention that in her question. At the Budget, the Chancellor announced that we will deliver a further £2.8 billion of efficiencies and savings in 2028-2029.

[Lord Kakkar (CB)]

My Lords, much of the future improvement in productivity in the NHS is predicated on the adoption of innovative technologies. Is the Minister content that there is sufficient investment in the continuing development of the NHS workforce to facilitate the adoption of that technology and deliver that improvement in productivity?

[Lord Livermore (Lab)]

I am. We are investing £10 billion in digital technologies within the NHS. We have introduced a 2% efficiency and productivity target in the NHS for each year of this Parliament. That is supported by the Government’s 10-year health plan for England, which will improve outcomes for patients and deliver better value for money for taxpayers. The noble Lord is absolutely right that digital technologies and their adoption is vital to that. As I say, that is why we have invested £10 billion in it. We are moving more healthcare into the community and we are focusing more on the prevention of illnesses.