Matthew Lynn

    What is Keir Starmer’s plan for growth?

    What is Keir Starmer’s plan for growth?
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    A few vague promises about upgrading skills. And something or other about promoting innovation and raising productivity. Sir Keir Starmer did not exactly set the world alight in his speech to the CBI today. Given that he is twenty points ahead in the opinion polls, and sometimes more depending on the latest Tory implosion, perhaps he felt he didn’t need to. Instead the Labour leader seemed content to confirm a point that was already obvious to anyone: the Prime Minister doesn’t have a plan for growth. And the prime-minister-in-waiting doesn’t have one either. 

    Rishi Sunak’s talk to the CBI yesterday was not exactly a hard act to follow. Over 40 minutes, the PM waffled his way through some guff about balancing the books. His speech must have had most of the audience wishing they were spending their Monday morning at a sales conference at a Holiday Inn next to the A1 instead. Even so, with the bar already very low, Sir Keir hardly managed to climb over it.

    'I’ll put it simply: every business in this room has a strategy for growth. A nation needs one too,' thundered the Leader of the Opposition, in what might have seemed like the opening to a barnstorming programme of economic reform. So what might it be exactly? 'I believe in our country,' he continued. 'I believe in our businesses and I believe in our people.'

    Well, at least that's clear. Beyond believing in our country, and, of course, our people – which surely all politicians do – the detail was vague. Britain's 'immigration dependency' must end,' Starmer told the business bigwigs in the room. But the plan for how was far from comprehensive.

    Sir Keir will maintain the relationship with the EU roughly where it is. He will focus on skills and innovation, just like every other prime minister over the last 50 years. Oh, and he will unleash the full force of Ed Miliband to promote ‘green technology’ and ‘green jobs’, ignoring the fact that every other government in the developed world is adopting precisely the same strategy. Starmer also seemed to forget that while ‘green technology’ may help save the planet, it's unlikely to create many jobs, at least in the short term.

    In truth there are ways the UK could improve its dismal growth rate. It could reform its collapsing healthcare system. It could rip up obsolete planning rules. It could create clusters of innovation in technology. But neither the Conservative or Labour leaders are in the least bit interested – and they

    Written byMatthew Lynn

    Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

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