Rachel Reeves distances Labour from Corbyn vowing to be ‘pro-growth’
Rachel Reeves today promised to lead the ‘most pro-growth Treasury’ in history as she moved to distance Labour from the Corbyn era.
The shadow chancellor insisted the party had ‘changed’, arguing it was now the ‘natural party of British business’.
Giving a speech in Derby, she promised to give companies a ‘bedrock of stability’ in which to operate. She also tried to calm nerves about red tape from workers rights and extra power for unions, saying a Keir Starmer government would be ‘pro worker and pro business’.
And she signalled Labour’s confidence by claiming she was setting the direction for a ‘decade of renewal’ in government.
The Opposition is trumpeting a letter of endorsement from business figures, including Iceland chief Richard Walker – who previously wanted to stand as a Tory candidate.
Other backers of the letter – branding the election a ‘chance to change the country’ – are television chef Tom Kerridge and Wikipedia founder Jimmy Wales. However, there are no leaders of FTSE 100 companies.
Ms Reeves tried to reassure voters that she would not ‘play fast and loose’ with public finances, saying she knew taxpayers’ money should be treated with the same respect people treat their own money.
Ms There are no additional tax rises needed beyond the ones that I’ve said”
‘I am not one of those politicians who think the private sector is a dirty word or a necessary evil,’ she said.
Shadow Chancellor Rachel Reeves promised to lead the ‘most pro-growth Treasury’ in history in a bid to attract business back to Britain
Giving a speech in Derby, she promised to give companies a ‘bedrock of stability’ in which to operate
Defence Secretary Grant Shapps said unions would be ‘cheering’ the speech by Ms Reeves
Ms Reeves said: ‘If we can change this party to bring it back to the service of working people; if we can return it to the centre ground of politics; if we can bring business back to Labour, then I know we can bring business back to Britain.’
Ms Reeves’ time as Shadow Chancellor has been notable for her courting of businesses, especially when compared to the previous Labour leadership.
She said: ‘Labour’s plans for growth are built on partnership with business. It is clearer than ever that in this election, in the face of Tory chaos, stability is change.
‘Stability, so that we never again see a repeat of the mini budget and the damage it did to family finances.
‘Stability, so that families and business can plan for the future. Stability of direction, so we can bring together government, business and working people in common purpose, to meet the great challenges of our time.’
The election is a ‘chance for the British people to pass judgment on 14 years of economic chaos and decline under the Conservatives’.
She also claimed that Rishi Sunak would never have called the July 4 vote if he believed in his own plan for the economy.
But, despite her pro-business rhetoric, senior Tories have accused Labour of undermining firms by introducing French-style union laws.
Deputy Labour Leader Angela Rayner has drawn up a ‘new deal’ for workers that she wants to introduce in the first 100 days of a Labour government.
Some major business leaders, however, have warned that the legislation may make it more expensive to hire workers.
Laura Trott MP, chief secretary to the Treasury, said: ‘The bosses of Asda, Marks & Spencer, Currys and the Confederation of British Industry have all warned that Labour’s French-style union laws risk damaging the economy, costing jobs.
‘Rishi Sunak and the Conservatives have a clear plan that businesses can rely on.
‘We took the bold action to deliver the biggest business tax cut in modern history. Labour would tie businesses in red tape and raise taxes by £2,094 for hardworking families.’
It comes as Labour was last night warned over its plan to hand more powers to the Office for Budget Responsibility (OBR).
Ms Reeves has promised to strengthen the remit of the OBR so it can decide when it is appropriate to break fiscal rules.
But economists at the Institute for Fiscal Studies said such questions are ‘inherently political’.
A group of Tory MPs recently urged the Government to ‘look to end its unhealthy dependence’ on the OBR following forecasting errors.
Ben Zaranko, senior research economist at the IFS, said: ‘Choices over how much to tax, spend and borrow are not narrow technical questions, but are inherently political. Elected politicians should be responsible for making them.’
Ms Reeves earlier this year pledged to ‘strengthen’ the OBR with ‘a new fiscal lock, guaranteeing in law that any government making significant and permanent tax and spending changes will be subject to an independent forecast from the OBR’.
Deputy Labour Leader Angela Rayner has drawn up a ‘new deal’ for workers that she wants to introduce in the first 100 days of a Labour government
