As the cost of living soars, Labour sets out its plan for a stronger economy
Labour has set out how a wasted decade of low growth and spiralling inflation is holding back Britain – and how a Labour government will unleash the talents of workers and businesses to build a stronger economy in every part of Britain.
This is a plan based on an understanding that Britain’s real wealth and prosperity is found not just in the bank accounts of friends of the Conservative Party, but in the effort and talent of tens of millions of ordinary people.
Speaking to an audience in Bury, Greater Manchester on Friday, Shadow Chancellor Rachel Reeves MP set out the party’s five-point plan for a Stronger Economy.
- An Industrial Britain: One fit for the 21st century, with a strong local and regional voice, built on an ethos of cooperation across the public and private sectors, creating prosperity across our everyday economy and mobilising around the great challenges of our time.
- A Learning Britain: Ensuring no young person leaves education without the skills they need to thrive in a modern economy; and delivering on Labour’s plan to create new apprenticeship opportunities, which would have seen 100,000 more apprenticeships available to young people this year.
- An Investing Britain: Labour will ensure the jobs and industries are based in Britain through its’ £28 billion Climate Investment Pledge.
- An Innovative Britain: Labour will level up on R&D, directly supporting the next generation of entrepreneurs through a target to help create 100,000 new businesses over the next five years with a particular focus outside London and the South East. A Labour government will create the conditions for new, innovative businesses to start, grow and thrive; and support small and medium-sized businesses to gain access to information, technology and investment so they are not frozen out.
- A Trading Britain: Labour’s plan to Buy, Make and Sell more in Britain will help us lead the pack globally and create the high paid, high skilled jobs of the future we need. The party will stand up for British businesses and British workers in the face of global giants, restore visa-free touring for musicians, secure veterinary agreements to relieve the challenges facing our food and drink industry at the border, and negotiate a deal to ensure mutual recognition of professional qualifications.
Rachel Hopkins MP for Luton South said:
“After a decade of low growth, stagnant wages and rising prices, it’s clear that the Conservatives economic approach has held back progress in Luton South and the UK.
Now rising inflation, an impending energy price increase and the Tory tax on jobs threaten living standards in our communities.
The public needs a government that drives growth by developing opportunities and investing in our towns and regions. Only Labour has a serious plan to build a strong economy that benefits everyone.”
- Between 1997 and 2010, with Labour in government, the UK economy grew at 2.3% a year. In the decade leading up to the pandemic, growth averaged just 1.8% a year.
- The Latest Bank of England forecast suggests that growth will be as low as 1% in 2024.
- Growth in the decade to 2019 was slower in the UK than our peers in the OECD, 1.8% versus 2.1%.
- The UK is ranked 4th from the bottom in the OECD group of countries for forecast growth over the period 2019 – 2023.
- UK productivity remains about 15% below the USA and France.
- In the 12 years to 2007, labour productivity grew at roughly 2 per cent per year in the UK and on average among the 25 richest OECD countries. In the 12 years since the crisis, productivity grew by only 0.4 per cent per year in the UK, and 0.9 per cent per year in those other advanced countries.
World Economic Outlook Database: October 2021