The CBI Annual Conference 2022: the Leader of the Opposition’s speech

What can businesses expect from a Labour government?

According to Sir Keir Starmer, Leader of the Labour Party, Labour is ready for government, and ready and willing for partnership with business. Sir Keir wants his party to show clear economic leadership, and says Labour is unashamedly proud of being pro-business.

Labour’s three priorities for economic growth

1. Economic stability

Stability is the bedrock on which everything depends, and chaos has a cost. So as a result, Labour are committing that every policy they announce will always be fully costed. Fiscal responsibility is also important – Labour are determined to reduce debt as a share of our economy.

Of course, that means they won’t be able to do some things as quickly as they might like. But the lesson learnt from the last few months is that once we lose control of the economy, it’s businesses and working people who pick up the bill. And Labour, Starmer says, are determined not to let that happen again.

Real economic stability must be about much more than public finances. It must be about providing the right conditions to plan and invest, to think about long-term strategy, - not just short-term fixes, to create confidence through certainty.

2. Higher skills

Any serious plan for growth must accept the need to transform how our country trains people for work. That’s why Labour have committed to changing the way government supports businesses to get the skills they need – particularly after the delivery of Lord Blunkett’s Learning and Skills Report.

Labour thinks the Apprenticeship Levy isn’t flexible enough – something the CBI agrees with. Apprenticeships are “a gold standard qualification,” but alongside them, there needs to be training that works for businesses – such as technology short courses, and retraining opportunities for both younger and older workers.

Labour knows businesses need more control over what their training levy can buy. Sir Keir committed to devolving both money and power on adult skills budgets as well, so that decisions that drive growth in communities are made by people with “skin in the game.”

3. Green growth

Climate change, Starmer believes, is the defining social challenge of our times – but – rather than seeing climate change as a risk, he sees it as an opportunity. And the reason for that is contained within Labour’s Green Prosperity Plan – a plan to make Britain a “green growth superpower,” involving investment in wind, solar, nuclear, hydrogen, and “much more.”

Clean British power is nine times cheaper than imported fossil fuels. And with more clean power, businesses and people get cheaper bills, the UK’s energy future is more secure, and more green jobs are created.

A new partnership between Labour and business

During his speech, the Labour Leader mentioned the word “partnership” eleven times. It’s clear that a partnership between Labour and business is something he sees as crucial to the UK’s future.

Partnership is not just between government and businesses. Starmer also pointed out that his new partnership would also mean a Labour government having new expectations on firms, including negotiations with trade unions, particularly in relation to immigration.