LIVERPOOL, England (Reuters) -Labour’s finance policy chief Rachel Reeves pledged on Monday to rebuild Britain if the party is in government. She promised to use “iron-clad” fiscal rules, crack down on fraud, and collaborate with businesses to restore the country’s future.
In her speech at the Labour Party’s annual conference in Liverpool, Reeves reassured investors and voters that the party, once considered spendthrift, can be trusted with the economy. She criticized the Conservative Party for increasing mortgage payments during former Prime Minister Liz Truss’s tenure, which caused market chaos due to uncosted spending plans.
Reeves accused Prime Minister Rishi Sunak’s party of lacking new ideas and emphasized that only Labour’s combination of strict spending, improved tax collection by closing loopholes, and a crackdown on fraud would offer stability to voters during the current cost-of-living crisis. She received a standing ovation as she declared, “We will lift our living standards, make work pay, rebuild our public services, invest in homegrown industries in every corner of our country, and together we will get Britain its future back.”
With Labour leading in opinion polls ahead of an expected election next year, the party has been actively engaging with companies and has received interest from them as well. The “business day” event organized by Labour, which still has a waiting list of hopefuls, has doubled its capacity.
Mark Carney, former governor of the Bank of England, surprised everyone by endorsing Reeves, calling her a “serious economist” who understands the bigger picture. In a video message played after her speech, Carney stated, “It is beyond time we put her energy and ideas into action.”
Reeves also pledged to stimulate investment and expedite the planning process for critical infrastructure projects related to energy, transportation, and technology within the first six months of assuming power. She aimed to restore business investment as a share of GDP to the level it was during the last Labour government’s tenure from 1997 to 2010. This would mean an additional £50 billion every year in the British economy by the end of the decade, equivalent to £1,700 per household.
Like Labour leader Keir Starmer, Reeves acknowledges the critical state of Britain’s public finances, which will limit the party’s actions if it forms the next government. Labour has strengthened its economic reputation by committing to a set of “non-negotiable” fiscal rules, ensuring that the party will not borrow for day-to-day spending and promising to present a budget by the end of November each year.
An opinion poll conducted by MHP/Savanta with the New Statesman Spotlight indicated that Labour’s efforts have paid off, with the Conservatives no longer being considered the preferred party of business by the polled business leaders. Labour’s engagements with city financiers and businesses across the country seem to have yielded positive results.
Two business leaders confirmed that companies are eager to engage with Labour, hoping to prioritize their concerns on the party’s agenda. One director at a major manufacturing company revealed that they were sending a team twice the size of the one sent to the Conservative conference last week to Labour’s event.
During the conference, Starmer expressed his desire to learn from business and emphasized the importance of companies understanding the role of the government. He stated, “It’s got to be a partnership. And therefore if we do come into government, you will be coming into government with us.”
(Writing by Elizabeth Piper; additional reporting by Sarah Young; Editing by Alex Richardson, Ed Osmond, and Christina Fincher)
Credit: The Star : News Feed
