Keir Starmer CBI trail: A new partnership between business and Labour

Keir Starmer will today (Tuesday) tell business bosses that “the days when low pay and cheap labour are part of the British way on growth must end.”

The Labour leader will say that “our common goal must be to help the British economy off its immigration dependency. To start investing more in training up workers who are already here.”

Speaking at the CBI conference in Birmingham, Keir Starmer set out his plan to build a “fairer, greener, more dynamic Britain”, one where “aspiration is rewarded”, of a Britain that has its “hope and its future back”.

The Labour leader, who has repositioned Labour’s relationship with business after the Corbyn years, said that he wanted the next Labour government to have a “new partnership” with business that would be different that anything that has gone before – genuine, deep, and requiring government and business to both do the tough things needed to get the economy back on track. 

On immigration, that means Labour will make the immigration system work better for the needs of business – but business in return needs a plan to train up British workers.

The labour market is one of the supply-side reforms the Labour leader will speak about alongside bold action on skills, childcare, climate change and technology to grow our long-term potential. 

Keir Starmer will say that the next Labour government will be “pragmatic” on the basic shortage of people and won’t ignore the need for skilled people to come into the country.

“But I want to be clear here: with my Labour Government any movement in our point-based migration system, whether via the skilled occupation route, or the shortage worker list, will come with new conditions for business.

“We will expect you to bring forward a clear plan for higher skills and more training, for better pay and conditions, for investment in new technology.

“But our common goal must be to help the British economy off its immigration dependency. To start investing more in training up workers who are already here.

“Migration is part of our national story – always has been, always will be. And the Labour Party will never diminish the contribution it makes to the economy, to public services, to your businesses and our communities.

“But let me tell you - the days when low pay and cheap labour are part of the British way on growth must end.

“Now, I know most businesses get this. But when we look at our economy as a whole, it can seem like we’re more comfortable hiring people to work in low paid, insecure, sometimes exploitative contracts than we are investing in the new technology that delivers for workers, productivity and our country.

“And we can’t compete like that. Britain’s low pay model has to go. It doesn’t serve working people. It’s not compatible with grassroots growth.

“The three big priorities for my Labour Government, the principles our partnership must deliver to drive Britain forward, are:

One – economic stability.

Two – higher skills.

Three – green growth.

“I’ll put it simply: every business in this room has a strategy for growth. A nation needs one too. 

“I believe in our country, I believe in our businesses and I believe in our people.

“Britain deserves better. A new partnership for prosperity. The path to a fairer, greener, more dynamic country. To higher wages, higher skills, higher productivity.

“To leading the world on the greatest challenge facing our planet. To giving working people a sense of hope, aspiration and possibility once again.”

Ends

Notes

• It is now clear after the autumn statement that it is only the Labour Party that has a serous plan for inclusive growth.
• Labour supports a points-based immigration system that works for British workers and British businesses. We do not support a return to freedom of movement. 

• The current system doesn’t work and has led to delays in filling labour shortages, workers are not getting the skills they need to get on and stagnant pay and poor conditions are commonplace in sectors of the UK economy.

• Labour will make the immigration system work better for the needs of business, but business in return needs a plan for British workers. 
• Labour will not see low-paid work and skills shortages proliferate; nor will we see economic growth hampered. 
• We will do this by better linking the immigration system with training, skills and employment conditions here at home so that everyone benefits. 
• Specifically, we will:
• • Reform and strengthen how the Migration Advisory Committee works so that it has better information, connects across Government departments on labour shortages and skills shortages, and projects future trends.
  • Tackle visa processes and timing so it works of employers and employees, avoiding labour shortages that hurt the economy.
  • Ensure that where there are shortages that need to be filled through international recruitment, we also make sure there is proper training, plans for improving pay and conditions or modernisation of the sector.
  • Ensure all employers able to sponsor visas are meeting decent standards of pay and conditions.

• We will be reviewing these, and other policies, with businesses, trade unions, and community groups, to design a points-based immigration system that is efficient, effective, and delivers for Britain’s workers and businesses.