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Britain’s growth outlook has been slashed as the country is stuck in a rut of low productivity growth and miserly pay rises. Read this article in from the Telegraph.  

It also adds £90.5bn to the Government's borrowing by 2021-22, the OBR estimates, which is partly offset by other changes including jobs growth. The Chancellor said he wants to ­address this severe problem, expanding the National Productivity Investment Fund from £23bn to £31bn, allocating £2.3bn more to research and development spending, increasing R&D tax credits, spending more money on digital connectivity, and on skills such as maths education.

"We have some of the world's best companies. And a commanding position in a raft of tech and digital industries that will form the backbone of the global economy of the future," the Chancellor said. "Those who underestimate Britain, do so at their peril."

OBR officials believe Mr Hammond's policies might help productivity growth, but only in the long term.

"Improving skills in the workforce is one very obvious way to boost productivity but it takes a long time for the ­effects to be felt," said Sir Charlie Bean.

While productivity growth could be better or worse than forecast, he is ­optimistic about the potential of new technologies such as artificial intelligence in the long term.