Sir Keir Starmer has suggested that Labor would abandon its pledge to renationalise the railways, despite repeated promises to do so.
The Labor leader insisted he was taking a “pragmatic” approach when asked if he would bring rail, energy and water companies back under public ownership.
His vision appears to have changed since he became leader in 2020, when he pledged to renationalise the sectors during his campaign. The 2017 and 2019 Labor manifestos under Jeremy Corbyn also promised this.
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Image: Sir Keir Starmer’s leadership election promises included the renationalisation of the railways
Shadow chancellor Rachel Reeves said earlier in the day that the policy was no longer compatible with the “fiscal rules” she would introduce to rein in public spending.
Asked if he would re-nationalise these industries, Sir Keir said: “I take a pragmatic approach rather than an ideological one, I agree with what Rachel Reeves said this morning.
“After the pandemic, it is very important that we have very clear priorities and that is why we have already established fiscal rules as an opposition.”
His comments are likely to anger unions on whom he largely depends for support as they prepare to hold more rail strikes this week over pay and working conditions.
Last year, Sir Keir ruled out nationalizing big energy companies, again saying he was “pragmatic” about common ownership.
Sir Keir was speaking after unveiling Labour’s economic plan, in which he said a “new approach” was needed to restart Britain’s economy.
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“Our economy is weaker than our competitors, less resilient, more fragile and ultimately we are all poorer for it,” he told Labor supporters in Liverpool.
“That’s why I’m clear: Labor will fight in the next election for economic growth.
“There is no task more central to my ambitions for Britain than improving the country and its people.”
He said his aim is to “maximize the contribution we all make to national prosperity” and ensure that hard work pays off and has the security needed “to move forward”.
“To do all of this, we need three things: growth, growth, growth,” he said.
Image: Workers campaigned to renationalise key industries in 2017 and 2019
“There is no magic money tree economy”
Sir Keir said a Labor government “would not announce a penny of day-to-day spending without saying how we would pay for it”.
They would only borrow to invest in future challenges such as climate change, and set a target to reduce debt.
“With me, with Rachel Reeves, you will always have sound finances, careful spending, strong, safe and fair growth,” he promised.
“There will be no magical money tree economy with us.”
Gordon Brown to look at economic recovery
He also said he has asked former prime minister and chancellor Gordon Brown to look at new forms of economic devolution to help spread power, so it is not concentrated in big cities.
And borrowing the phrase “levelling” from the Tories, he said Labor would not do it “from the centre”, while the reforms would allow devolved and local government to make “long-term financial decisions” beyond the political cycle
He also took aim at the Tory leadership candidates, saying that Rishi Sunak is “the architect of the cost of living crisis”, while Liz Truss is “the latest graduate of the tree school of economics magic money”.
Sir Keir added that neither of them has the answers to the economic challenges facing the UK because they are both “raging against the dying of the Thatcherite light” and “fail to understand that economic strength in the 21st century needs col… collaboration”.
Image: Sir Keir said Rishi Sunak and Liz Truss were ‘raging against the dying Thatcherite light’
Economic plan of five points of work:
1. Financially responsible
2. Distinctively British
3. Work in collaboration with companies
4. Reactivate communities and spread economic power
5. Refocus our investment on increasing productivity.