In a speech at the Resolution Foundation’s The Economy
2030 Inquiry launch this afternoon (Monday 4 December),
, leader of the Labour Party,
will warn that an incoming Labour government will face ‘huge
constraints’ on the economy and that after thirteen years, the
Conservative Party has wrecked the public finances.
For that reason, Starmer will say:
“Anyone who expects an incoming Labour Government to quickly turn
on the spending taps is going to be disappointed. Growth will
have to become Labour’s obsession” if we are to turn around the
economy.”
Addressing the room of economists, think tank
representatives and journalists, Starmer will say today’s
economic situation is far worse than 2010:
“It’s already clear that the decisions the Government are taking,
not to mention their record over the past thirteen years, will
constrain what a future Labour government can do.
“The comparison between 2010 and today is instructive. Now, debt
and interest rates are much higher. Britain’s standing is
diminished. Growth is stagnant and public services are on their
knees. Taxes are higher than at any time since the war, none of
which was true in 2010. Never before has a British government
asked its people to pay so much, for so
little.
“Inflation, debt, taxes; we face huge constraints."
The Labour leader will say hard work is no longer
rewarded as the Conservative government oversees a fall in living
standards.
“This Parliament is on track to be the first in modern history
where living standards in this country have actually contracted.
Household income growth is down by 3.1% and Britain is worse
off.
“This isn’t living standards rising too slowly or unequal
concentrations of wealth and opportunity. This is Britain going
backwards.
“This is worse than the 1970s, worse than the recessions of the
1980s and 1990s, and worse even than the great crash of 2008.
“The security blanket, that hard work would be rewarded, sadly no
longer exists. The political consensus that if you work hard and
play by the rules, you will get on - a glue that binds British
society together - has become nothing short of a lie for millions
of people."
He is expected to say:
“The Tory record has been a bad bargain for the British
people. I want a better bargain for the public - stronger
growth, rising incomes, generating the wealth we need to fund our
public services. But for that to happen we need to change
direction and that’s what my ambition for Britain is all
about.”
Starmer will say making growth Labour’s ‘obsession’ is a
big change for the party.
“The defining purpose of the next Labour government, the mission
that stands above all others, will be raising Britain’s
productivity growth. A goal that for my Labour Party is now an
obsession. That’s a big change for us. Having wealth creation as
our number one priority, that’s not always been the Labour
Party’s comfort zone.
“But that’s the change I knew was necessary, and that’s the
change I’ve delivered. And my party is united behind it."
Starmer will contrast Labour’s approach to growth with
the Tories’ calling out their 11 failed, short term growth plans
over the last 13 years.
He will outline five key principles that will guide a new
approach to growth - Securonomics - a new modern supply side
theory - that will harness Britain’s strengths. will say:
“The UK has huge assets: flexible product and finance markets, a
highly educated population, and world class universities. This
city is an economic giant.
“With securonomics as our guide, there are big steps we can take
quickly that will get British growth moving. One, we must tackle
restrictive planning laws and get Britain building again. Two, we
can back British business with a competitive tax regime, a new
direction on skills, and a proper industrial strategy drawn up
with business. Three, we will broker a new deal to make work pay
with increased mental health support, fully-funded plan to cut
NHS waiting lists, an end to zero hour contracts, no more fire
and rehire, and a real living wage.”
He will also define the growth his Labour government will
pursue. will say:
“It’s not the case that ‘any growth’ will do. No, we can’t be
agnostic about the sort of growth we pursue, anymore. The growth
we need must better serve working people. And must
raise living standards in every community.”
Offering the alternative to continued managed decline
under the Conservatives, Starmer will outline plans for a new way
of governing under Labour:
“We will make different choices. On the non-dom tax status, we’ll
invest in cutting NHS waiting lists. And on removing private
schools tax breaks, we’ll invest in high quality teaching and our
children’s mental health.
“At the same time, we will be ruthless when it comes to spending
every pound wisely. I ran a public service in the bad days of
austerity. I know how hard it can be. But I also know you can
always find ways to improve delivery and change your practice,
your behaviour, and reform your approach. When times are tough,
like now, that is the least people expect.
“That’s why I have said to every member of my Shadow Cabinet when
they are drawing up their plans for our manifesto: think
carefully about how precious every pound is for the people we
must serve. And approach public finances and spending decisions
like it’s their money. Because at the end of the day, it is.”
