Labor leader Keir Starmer will try to frame the next general election as a battle for the economy, declaring on Monday that the priorities of a Labor government would be “growth, growth and growth”.
Echoing Tony Blair’s claim in 1996 that his top priorities would be “education, education and education”, Starmer is expected to say in a major speech in Liverpool that “no there is no task more central to my ambitions for Britain than to make the country and its people better. That is why I am clear that Labor will fight the next election for economic growth.”
It will outline plans for a new statutory industrial strategy council to become “a permanent part of the landscape, setting national strategic priorities that go beyond the political cycle; it forces us to account for our decisions; and generates investor confidence that will drive long-term growth and productivity.”
He will say that the pandemic and the cost of living crisis have shown that Britain’s economy in its current state is too “fragile”.
The speech comes amid forecasts that UK economic growth will stagnate next year, with consumer price inflation at 8.2% in the year to June, and a Conservative leadership contest that has saw sharp clashes over the economy, with Rishi Sunak outlining Liz Truss’ plans. borrowing billions to finance tax cuts as a “fairy tale”.
However, Starmer also faces a challenge from the left of her party, with Rebecca Long-Bailey, Jeremy Corbyn’s shadow business secretary, calling on Sunday for Labor to abandon its cautious approach to the ‘economy and fight for a radical manifesto that includes the state. property and a standard of living contract between the government and the public.
Starmer has been trying to present Labor as the party of fiscal prudence and will say: “With me and Rachel Reeves [the shadow chancellor], you will always get solid finances; careful spending; strong, safe and fair growth. There will be no magic money tree economy with us.
Long-Bailey represents the thinking of the left of the party which is concerned that Starmer may abandon interventionist policies such as state ownership of public services which she says would help with the cost of living crisis.
Starmer’s speech is not seen as offering detailed policies to generate growth and has faced questions about how much he would be able to achieve if a long-term global recession and high inflation set in.
However, he will say that his economic plan will be based on three principles: “strong, safe, fair”.
“Strong, because it will build a foundation where every company and every person has a role,” he is expected to say.
“Sure, because it will produce good jobs that do not leave people insecure.
“It’s fair, because it will unlock the potential of every place: every community, every town and every city.”
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In an episode of The Rest is Politics podcast last week, former Tory cabinet minister Rory Stewart asked Starmer about his economic plans.
“We’re about to enter a 10-year global recession, and even if you become prime minister, you have very limited control,” Stewart said. “What the hell are you going to do about interest rates and inflation?”
The Labor leader said he wanted to bring “certainty and confidence” to investors so that the manufacturing of items such as the wind turbines that generate power in the north of England is not outsourced to countries such as China.
Meanwhile, the Liberal Democrats plan to launch attack ads against Sunak over the tax hikes he announced as chancellor.
Party polls suggest the increases are “as big a vote loser for the Tory party as Boris Johnson in the south-east of England”, which the Lib Dems believe will be a key battleground for the “blue wall ” at the next election.