UK Labour Party has a Biden-esque economic plan, but it’s no Bidenomics

LIVERPOOL, U.K. – Oct. 11, 2023: Britain’s main opposition Labour Party leader Keir Starmer applauds a speaker the final day of the annual Labour Party conference in Liverpool, northwest England, on October 11, 2023.

Paul Ellis | Afp | Getty Images

LONDON — The U.K.’s main opposition Labour Party last week set out the economic platform it hopes will propel it to power at next year’s general election, and the trans-Atlantic parallels were clear.

Labour leader Keir Starmer promised to go “speed ahead” with investment in the clean energy transition that he said would create half a million jobs and power economic growth while delivering on the country’s climate goals.

“Clean British energy is cheaper than foreign fossil fuels. That means cheaper bills for every family in the country, but also a chance to make us more competitive across the board,” Starmer told the party conference in Liverpool, England, on Tuesday last week.

“Countries like America are using this gift to create manufacturing jobs the like of which we haven’t seen for decades, and they’re not the only ones.”

Elsewhere, Shadow Chancellor Rachel Reeves set out an economic plan she dubbed “securonomics,” rooted in the belief that growth is created “from the bottom up and the middle out” — a word-for-word echoing of U.S. President Joe Biden’s economic philosophy.

Reeves promised last week to “rebuild Britain” as the party seeks to de-risk business investment in emerging technologies with a new national wealth fund, maintaining an active state while harnessing private investment to drive economic growth.

She also vowed to overhaul the country’s planning system in order to speed up infrastructure projects, a plan she claimed will unlock a further £50 billion ($61 billion) of private investment.

Reeves said that Labour wants to secure £3 from the private sector for every £1 of public money spent in the proposed national wealth fund, and the plan was widely acknowledged to have been inspired by Biden‘s Inflation Reduction Act, or IRA.

Businesses are asking for 'stability' rather than corporation tax cuts, shadow business secretary says

Reeves told the conference that business investment was the “lifeblood of a growing economy.”

“It is investment that allows businesses to expand, create jobs, and compete with international rivals, with new plants, factories and research labs coming to Britain — not Germany, France or America,” she said.

“But today, we lag well behind our peers for private sector investment as a share of GDP, with tens of billions of pounds less spent on new machinery and infrastructure.”

The Biden administration’s landmark IRA legislation — targeting manufacturing, infrastructure and climate change — generated more than $500 billion in investment during its first year, according to the U.S. Treasury, with $200 billion of that going into the clean energy sector.

Labour’s desired parallels to “Bidenomics” were discussed at a host of fringe events throughout the conference in Liverpool, particularly with regard to the “crowding in” of private investment — a Keynesian economic…

Read More: UK Labour Party has a Biden-esque economic plan, but it’s no Bidenomics

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.