Optimism is in short supply at this time of political and economic turmoil. And it’s easy to see why. Business has suffered from a bad Brexit deal, a gruelling pandemic, and a series of reckless, short-sighted economic decisions that have set back our economy.
First, austerity cut to the bone the vital investment needed for growth.
Second, the Tories negotiated a Brexit deal that has caused serious damage to our economy.
Third, when Rishi Sunak was Chancellor, he failed to grow the economy and instead raised taxes to their highest level.
Fourth, the wild Liz Truss experiment crashed the economy.
Fifth, the Sunak-Hunt high tax, low growth economy we are seeing today
Labour worked up its plans in partnership with business with the purpose of kick-starting growth everywhere and making working people in all parts of the country better off.
Labour will build a genuine partnership with business and civil society – sleeves rolled-up, working for the national interest. A strategic partnership that builds a bridge from the jobs we must protect today to the opportunities we have to win tomorrow. Here’s the plan in brief::
- Put economic stability first
- Iron clad fiscal rules and a fiscal lock.
- Capping Corporation Tax at 25 per cent for the next parliament and retaining full expensing.
- One Budget every autumn, at least four months before the new tax year.
- Back British business
- A new industrial strategy created in partnership with business, through a statutory Industrial Strategy Council, to maximise Britain’s strengths in life sciences, digital, creative, financial services, clean power, automotive, aerospace and defence sectors.
- Stable R&D tax credits, 10-year R&D budgets and a new Regulatory Innovation Office.
- Making Brexit Work and a trade strategy aligned with UK strengths.
- Get Britain building again
- Reforming planning rules to accelerate infrastructure and build 1.5 million homes and key infrastructure.
- Creating a National Wealth Fund, funded by our Green Prosperity Plan, to unlock billions of pounds of private investment, crowding in three times the amount of public investment.
- A new British Infrastructure Council, convening senior business leaders to advise on how better to deliver and fund national infrastructure projects.
- Kickstart a skills revolution
- Getting Britain back to work with 2 million more NHS treatments, 8,500 more mental health professionals, changing incapacity benefits to encourage disabled people to find work without fear of losing their income; devolving employment support to local areas.
- A new generation of Technical Excellence Colleges, offering more high-quality apprenticeships and providing training opportunities tailored to local jobs; and Skills England which will work with business to plan for the skills of the future.
- Reforming the Apprenticeship Levy as a more flexible Growth and Skills Levy.
- Growth everywhere and Making Work Pay
- Devolving powers away from Westminster, giving regional leaders the tools they need to develop long-term growth plans.
- Supporting a secure, motivated and well-paid workforce with a New Deal for Working People and delivering a genuine living wage, banning exploitative zero hours contracts and ending fire and rehire.