Labour woos business with plans to stimulate growth

LABOUR will set out proposals to transform Britain’s economic growth today as the party vies with the Conservatives for the support of business.

Lord O’neill, the crossbench peer and former banker, will outline the findings of a review looking at how to make Britain the best place to start and grow a business.

The launch at Canary Wharf will be attended by 350 business leaders, with shadow chancellor Rachel Reeves arguing that the proposals are crucial to getting the country “off its current path of economic decline” and embracing opportunities outside the EU.

“We are at a post-brexit crossroads,” she will say. “We can go down the road of managed decline, falling behind our competitors, or we can seize upon bold thinking to propel us forward.

“The mistakes of the past five Conservative prime ministers have left Britain in a cycle of low growth, stagnant wages and weak productivity.

“Labour wants to work in partnership with business to build a fairer, greener, more dynamic economy that unlocks Britain’s potential.”

The shadow chancellor, a former economist at the Bank of England, claimed Lord O’neill’s review will set out a “radical framework for success” .

Lord O’neill worked for Goldman Sachs from 1995 to 2013, spending most of that time as the Wall Street bank’s chief economist. He was made a life peer by David Cameron in 2015, initially sitting as a Conservative before leaving the party the following year.

His review was announced by Labour in June and looks at “how to ensure start-ups can thrive and grow in Britain, to boost jobs, investment and economic growth across the country”.

Ms Reeves has pointed to the initiative as proof that Labour is serious about seizing the pro-business mantle from the Tories. Along with Sir Keir Starmer, the party leader, and Jonathan Reynolds, the shadow business secretary, she has been leading a “prawn cocktail offensive 2.0” in the City to woo doubtful companies.

Relations between the Tories and big businesses have remained fraught since Britain left the EU, with Boris Johnson’s infamous “f--- business” quip still seen as emblematic of the party’s attitude by many corporate leaders.

At the annual conference of the Confederation of British Industry last month, Prime Minister Rishi Sunak insisted that the Tories remained the party of business.

He set out plans to boost innovation, which he said would be the most important driver of economic growth.