that compares with other developed countries. we are last on the list, behind canada, france, the us, germany and many others. uk level of investment has low since the 90s in the years after the financial crash of 2008 the coalition government put the brakes on spending, and investment went even lower. professor diane call at cambridge university told us. this is engineered arts in falmouth, and this is a humanoid robot called amico. studies suggest the country is lagging behind other advanced economies in terms of output for our work. for our work. emma kete interacts for our work. emma kete interacts with for our work. emma kete interacts with humans .
the case in 2010, but it is a longer term problem that we have seen over the years. the government have seen over the years. the government doesn t deny there is a problem here. since 2020 it has increased its own spending on investment and last year rishi sunak asked this. why is investment in capital so low? analysis is clear, the problem is no longer the government. businesses simply aren t investing enough. but why might aren t investing enough. but why might that aren t investing enough. but why might that be? because businesses don t take investment decisions in a vacuum and one factor in their decision making is political turbulence. decision-making is political turbulence. decision-making is political turbulence. most economists would tell turbulence. most economists would tell you turbulence. most economists would tell you what - turbulence. most economists would tell you what is - turbulence. most economists would tell you what is the i would tell you what is the n
that translates to real wages. all this means until the uk solves its productivity puzzle, it slow wage growth will be hard to resolve. 0ne it slow wage growth will be hard to resolve. one way to try to boost productivity is to increase investment. this is a farm that has been making ice cream since the 1980s. did you buy this farm to make ice cream or does it go further back? mr; or does it go further back? ij i grandmother or does it go further back? ii: grandmother bought or does it go further back? iii: grandmother bought this or does it go further back? iii grandmother bought this farm in 1935. . , , , grandmother bought this farm in 1935. . y y , ., 1935. recently they signed a big contract. 1935. recently they signed a big contract. with 1935. recently they signed a big contract. with m&s, i 1935. recently they signed a big contract. with m&s, the | big contract. with m&s, the father and son sebastian and ben parker needed two triple its output and that cost money. investmen
it s as simple as that. they send it s as simple as that. they spend it it s as simple as that. they spend £1 million it s as simple as that. they spend £1 million including. it s as simple as that. they i spend £1 million including on the spiralfreezer, now spend £1 million including on the spiral freezer, now they can produce three times the amount of ice cream with only a small increase in staff, the result is a big rise in their productivity. it result is a big rise in their productivity. it represents a step change productivity. it represents a step change in productivity. it represents a step change in the - productivity. it represents a step change in the way i productivity. it represents a step change in the way we i productivity. it represents a i step change in the way we have done things, small equipment, low output, clearly you can t produce the output you need to do to be able to fulfil a larger contract.- larger contract. great efficiency larger contract. gre
staff, so the ability to pay more helps. the farm experience shows how business experience can increase productivity and that can help deliver higher pgy- that can help deliver higher pay. but across the uk, it s not happening enough. low investment is a challenge for the uk economy now. but this isn t new. for the uk economy now. but this isn t new. the big problem 0 eration this isn t new. the big problem operation is this isn t new. the big problem operation is very this isn t new. the big problem operation is very low this isn t new. the big problem operation is very low levels - this isn t new. the big problem operation is very low levels of. operation is very low levels of investment, low levels of investment by firms, not only investment by firms, not only in kit, when it s hard to get some built in britain, low levels of investment in staff. between 1997 and 2017, investment and private companies and the government was equivalent to 16% of the uk gdp, 16% of the total va