Rachel Reeves, the shadow chancellor, has pledged that a future Labour government will adopt a more pro-business stance than Tony Blair’s administration.
Speaking to The Times, Reeves outlined Labour’s ambition to position the UK as the fastest-growing economy in the G7, aiming to secure £22 billion of private sector investment in green energy initiatives.
Reeves emphasized that under Labour’s vision, business groups and financial institutions would play a crucial role in decision-making alongside government ministers. She stressed that Labour’s objective is to foster a conducive environment for private business investment, asserting, “If I become chancellor, the next Labour government is going to be the most pro-business government this country has ever seen.”
The shadow chancellor highlighted plans to establish a national wealth fund task force, which aims to attract private sector investment into green technologies like hydrogen and carbon capture and storage. This initiative, backed by £7.3 billion of public sector funding, seeks to leverage an additional £22 billion of private investment.
Reeves underscored the importance of government support in facilitating investment in innovative yet costly technologies like green hydrogen. She explained that the government could provide assurances to investors by guaranteeing the purchase of products like hydrogen, thereby mitigating risks associated with market uncertainty.
Labour’s approach, according to Reeves, involves close collaboration with business leaders to address barriers to investment, including bureaucratic hurdles in areas like planning. She emphasized the necessity of understanding business perspectives to drive economic growth effectively.
Acknowledging the competitive global landscape for investment, Reeves emphasized the significance of supporting businesses while also reflecting on Labour’s philosophical shift towards prioritizing economic growth and living standards.
Reeves hinted at potential revisions to Labour’s plans to enhance workers’ rights, signaling a willingness to engage with business interests and ensure policy effectiveness. She stressed the importance of consultation and collaboration in refining Labour’s policies to benefit both businesses and workers alike.
Labour’s commitment to pro-business policies reflects a strategic shift aimed at fostering economic growth and collaboration with the private sector. As Labour prepares for potential governance, Reeves’s vision signals a departure from past approaches, prioritizing a collaborative and business-friendly agenda to drive economic prosperity.
