Get Britain building again
The British economy has been growing at the slowest rate for two centuries under the Tories. And the small amounts of growth it has seen have not benefited the whole country. The result is the biggest fall in living standards in a generation.
It should be the case that if you work hard and play by the rules, you will get on. But for millions of people that is simply not the case. People are working harder than ever but too often for less reward.
For too long we have lacked economic stability,
an industrial strategy, or enough public and
private investment to kickstart growth. There has not been a willingness to reform outdated planning laws that restrict the building of vital new homes and infrastructure.
That is why it is time for a change.
Labour’s plan for economic growth is ambitious: to get Britain building again by securing the highest sustained growth in the G7.
Labour’s first step to get Britain building again
Labour’s first step for change on the economy is to deliver economic stability with tough spending rules, so we can grow our economy and keep taxes, inflation and mortgages as low as possible.
Growing the economy on secure foundations will be the number one mission of the next Labour government. That is the route to making working people better off.
Labour will deliver stability with iron discipline, guided by strong fiscal rules, robust economic institutions, and a new ‘fiscal lock’ to ensure we never repeat the mini budget that sent mortgage rates soaring.
On this foundation of stability, we will deliver investment and reform to grow the economy building 1.5 million homes, making work pay, creating a new National Wealth Fund, and introducing a new industrial strategy.
At a glance: What Labour’s long term growth plan means for you
- Economic stability, certainty and tough fiscal rules creating the climate for low inflation.
- Well-paid jobs with an industrial strategy to back key sectors like life science, tech, financial, clean power and creative industries.
- More homeowners – reforming planning laws to build 1.5 million more homes with first time buyers getting first dibs.
- Higher living standards in all parts of the country.
- A living wage and more security at work with the end to zero hours contracts and fire and rehire.
Small business
The Beating Heart of our Economy: Labour’s Plan for Small Business
Labour’s five point plan for growth
Labour’s five point plan for growth is about kickstarting growth in all parts of the country, making working people better off.
- Putting economic stability first by introducing a new fiscal lock to bring economic security back to our national and family finances. Because we will never allow a repeat of the devastation of Liz Truss and the Conservatives’ mini-budget that crashed the economy and left working people worse off.
- Getting Britain building again by reforming planning laws to kickstart 1.5 million new homes, transport, clean energy, and new industries in all parts of the country. Because cheaper bills, the chance to own your own home and modern infrastructure are key to growth and the foundations of security.
- Backing British business with a new industrial strategy created in partnership with business to maximise Britain’s strengths in life sciences, digital, creative, financial industries, clean power and automotive sectors. Creating a National Wealth Fund to unlock billions of pounds of private investment, crowding in 3 times the amount of public investment. Because growing businesses are the best route to high paid jobs everywhere.
- Kickstarting a skills revolution. A new generation of Technical Excellence Colleges, offering more high quality apprenticeships and training opportunities tailored to local jobs in all parts of the country. Because higher skills are good for growth and rising living standards.
- Making Work Pay by introducing a new deal for working people and delivering a genuine living wage, banning zero hours contracts and ending fire and rehire. Because creating well-paid jobs across all parts of our country will make working people better off and more secure.
Watch Labour’s Economic Mission:
How the Tories have failed
All economies have faced the shocks of the pandemic and Russia’s invasion of Ukraine, but the truth is our economy has fared worse than our competitors. Inflation is higher, growth has been slower, our foundations are less secure.
For 14 years, growth has averaged 1.5%, when it was over 2% under the last Labour government. If we had continued to grow at a similar rate, we would have had tens of billions extra to put into our hospitals and schools.
The Tories have made mistakes, serious mistakes.
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.
The result is the highest taxes for 70 years, soaring mortgage and rent payments and flatlining growth.