More holidays and better pay would boost productivity, says thinktank

New Economics Foundation says putting money in workers' pockets will raise productivity

Giving workers more public holidays and raising their wages could boost the strength of the British economy, according to a report.

The New Economics Foundation said that driving up the spending power of consumers would give firms a greater incentive to raise their productivity, as they could have greater confidence there would be demand for their products and services.

Productivity is an economic measure of the efficiency of a workforce. It typically measures the level of output per hour of work, or per worker.