The Bank of England governor, Mark Carney said an increase in productivity “matters enormously” to the UK economy and is “key determinant” for increasing wages and living standards in the country.

The Office for National Statistics also cites productivity as the main determinant of national living standards. If a country can't deliver the goods - or, rather, keep delivering ever more of them, then ultimately its economy is doomed to fail; and this country isn't delivering more.

For every hour the nation works we are producing less than we were seven years ago. That's in spite of all the massive improvements in technology and computerisation there have been since then.

John Humphrys asked Mr Carney if ‘cheap foreign labour’ is stopping productivity increasing.

“I would really dampen down that explanation” he replied comparing the increase in number of British nationals working to the number of migrants:

“In the course of the last two years the number of older workers, people in their 50s and their 60s who have stayed in the Labour market has been more than 300,000. More than we would have seen in previous times.

"In addition people want to work more hours. That’s another 200,000 to 300,000 effectively more workers, compare that to the increase in net migration. The first two numbers total up to more than 500,000; the increase in net migration over that same period, the last two years is 50,000.”

John Humphrys also asked the governor of the Bank of England whether he wanted an EU Referendum before 2017. Mr Carney replied that it should be “as soon as necessary”.

“I wouldn’t put a specific timetable on it, the government has made it clear that it's a priority, I’m sure the government will act with appropriate speed in developing the negotiations and putting forward an appropriate question,” he said.