Tackling inequalities and informality is a priority. The tax-benefit system should be made more redistributive and employment friendly. Addressing barriers to competition and skill mismatch is crucial to support productivity growth.
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Growth in the United Kingdom has picked up, supported by a wide range of domestic policies. A balanced recovery requires higher productivity growth and would benefit from raising infrastructure investment and ensuring sustainable bank lending.
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Reform of labour market and competition policy, better tax and public spending, supported by improved justice and public administration are vital to raise employment, increase growth and improve public finances.
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