As Shadow Chancellor delivered a speech in
Washington DC today (Wednesday), she said only Labour will “pull
the levers needed to drive forward jobs and growth” in Britain,
saying that the party will seek a new “green” special
relationship with the United States in government to help build
the jobs and industries of the future.
It comes as the party reveals new figures showing how the UK has
a persistent gap in investment with the US – worth more than 3%
of GDP on average over the last three years – equivalent to
£75bn.
Reeves has made her first trip stateside as Shadow Chancellor
this week, first meeting with businesses and visiting climate
tech projects based in New York, and today revealing she will
meet with political figures in DC including key architects of
Biden's Inflation Reduction Act.
Pointing to Labour’s Green Prosperity Plan, its modern Industrial
Strategy and its plans to strengthen supply chains, Reeves said a
new era of partnership is emerging, one that builds resilient
relationships abroad, alongside a stronger economy at home.
Returning to her old stomping ground of Washington DC where she
was posted as a Bank of England economist, working on the
economic fallout post 9/11 at the British Embassy, she delivered
the commitment to a “green special relationship” focused on
boosting British jobs and industry while giving a speech at the
Peterson Institute, setting out more on how such a relationship
fits into her wider economic thinking for the UK economy.
She used the speech to launch her first economic pamphlet as
Shadow Chancellor “A New Business Model for Britain”, arguing
that her vision for the UK economy will build economic strength
in an age of insecurity, embrace a modern supply side approach
and help the country seize the opportunities of the future,
drawing on the talent and efforts of businesses and working
people.
She set out how such a new form of special relationship with the
US could take form, including a proposal for regular dialogue
with the key architects of the Inflation Reduction Act, practice
sharing through trade unions across the Atlantic on creating good
quality jobs, and tackling geographical inequality in the UK as
Biden has looks to do by turning the Rust Belt into the Electric
Vehicle Belt.
Reeves also pointed to comments from Biden’s National Security
Advisor Jake Sullivan saying just weeks ago that “Biden’s project
is to build out a modern industrial and innovation strategy—both
at home and with partners around the world.”
And she slammed Tory economic failures that have led to the US
Administration mentioning Japan, Canada and the EU as potential
partners in industries of the future but not Britain, saying “we
think we have a special relationship, but we're being written
out.”
And she will say, Britain cannot and should not go it alone,
saying that while there is no going back to the single market or
the customs union with Labour, the party would rebuild ties with
our closest neighbours in Europe and seek to make trade easier
for British exporters.
The UK is falling behind in the race for the industries of the
future, with its economy still smaller than before the pandemic,
while the US economy is now bigger than it was pre-Covid. While
UK manufacturing production fell by 3.7% last year, in the USA it
rose by 2.8.
Labour’s Shadow Chancellor said:
“In the last few years, the British government has let a critical
relationship slip. In his remarks, the US National Security
Advisor mentioned a number of international partners: Canada, the
EU, Korea, Japan, India, Taiwan, Brazil, Indonesia, Angola.
“One country, to me at least, was notable by its absence:
Britain. A relationship once called “special” has been allowed to
wane. With Labour, that would change.
“Labour will build on a new special relationship and it will be a
green special relationship focusing on the clean economy, where
both Britain and America have signature strengths.
“Working together, we can guarantee a resilient supply of the
clean energy and technologies that will power the decades, even
centuries, ahead. In the process, we can bring down bills and
tame inflation and build on our long history of economic
collaboration.”
Talking about trade and Britain's relationship with
Europe, Reeves said:
"A modern supply side approach in Britain
would see us rebuild our industrial strength. But it would have
trade and partnership at its heart too. Britain under Labour will
be a trading nation, exporting across the world and open to
business and investment at home.
"Britain cannot, should not and - with Labour in power - would
not try to go it alone. In 2025, the UK's deal with the Europe
Union will be reviewed. While there's no going back to the single
market or customs union with Labour, we would rebuild ties with
our closest neighbours in Europe and seek to make trade easier
for British exporters."