Delivering economic growth for the UK would be Labour’s main priority if it won the next general election, Sir Keir Starmer is to say. In a keynote speech, the Labour leader will say the economy is “brittle” and people are poorer as a result. He will argue that “rebooting” the economy would be the “defining task” of a Labour government. It comes as Rishi Sunak and Liz Truss trade blow over the economy as they bid to be the next Tory leader and PM.
Sir Keir will use his speech in Liverpool to criticise their “Thatcherite cosplay” and condemn the economic record of successive Conservative governments over the last decade. “Whether it’s the cost of living or recovering from the pandemic, our economy is weaker than its competitors. Less resilient. Brittle. And ultimately, we are all poorer for it,” he is expected to say. Labour’s priorities if in government would be “growth, growth, growth”, Sir Keir will say, adding that the party would focus on delivering this in a way that would be “strong, secure and fair”.
The next general election isn’t due until 2025, and both Tory leadership candidates have ruled out calling one earlier. As part of Labour’s plan to reboot growth, Sir Starmer will announce that his government would establish an Industrial Strategy Council, which will hold the government to account and be a “permanent part of the landscape” that sets out strategic national priorities “beyond the political cycle”.
He will also say it is possible to see economic growth while achieving the UK’s target to hit net-zero – where the amount of greenhouse gas emitted into the atmosphere is balanced by the amount removed. “We will not be distracted by the siren calls – from the right or the left – that say economic growth and net-zero do not go together,” he will say.
But Sir Keir has been challenged from the left of his party, with former leadership rival Rebecca Long-Bailey calling for a more radical economic policy. She told The Guardian: “We are living through the worst cost-of-living crisis in decades, with household fuel and water bills soaring, while rail fares continue to rack up. It’s critical that Labour remains on the side of public opinion here.”
Meanwhile, the economy has become a key battleground in the Tory leadership race, with former chancellor Mr Sunak describing Ms Truss’s plan to borrow money to fund immediate tax cuts as a “fairytale”. But Foreign Secretary Liz Truss criticised tax increases introduced by her former cabinet colleague Mr Sunak, arguing they “choked off” growth. She said the economic policies of previous Conservative and Labour governments over the last 20 years have not delivered growth. Both candidates have suggested their proposals would be approved by former Conservative Prime Minister Margaret Thatcher.
