The government has confirmed that Professor John Van Reenen, a prominent economist from the London School of Economics, will be providing direct advice to the Chancellor on improving productivity across the UK.

His appointment forms part of the government’s Plan for Change, which aims to boost economic growth and raise living standards nationwide.

Professor Van Reenen is an academic with extensive experience in productivity, innovation, and business performance. He has previously served as Chair of the Chancellor’s Council of Economic Advisers. In this new role, he will dedicate one day a week without pay for 12 months to work with the Treasury, starting in September.

Implications for businesses

Productivity — the amount of value created for the time and resources invested — remains a priority for the government. Weak productivity growth can limit wage increases and reduce competitiveness for businesses.

Chancellor Rachel Reeves said: “We still have work to do to build an economy that works for working people.” She believes that Professor Van Reenen’s involvement will help advance this goal.

For businesses, the appointment could signal potential policy directions over the coming year, such as:

  • Supporting investment in new technologies and processes.

  • Encouraging training and skills development.

  • Facilitating growth and scaling of operations.

  • Creating a more stable environment for long-term planning.

While this appointment alone will not transform the economy, it demonstrates that productivity remains a key focus for the government over the next year.

See: https://www.gov.uk/government/news/chancellor-appoints-growth-adviser