Labour’s Economic Strategy Unveiled by Rachel Reeves

Labour’s shadow chancellor, Rachel Reeves, has outlined the party’s economic strategy, vowing to usher in an “era of economic security.” In her speech at the Labour conference, she pledged to reduce waste and boost growth, a significant step onto traditional Conservative election territory.

Reeves emphasized that “responsibility must always come first” and underscored the importance of having economic stability to enable dreams and aspirations. She articulated the need to “wage a war against fraud, waste, and inefficiency,” including curbing what she referred to as the “Tory ministers’ private jet habit.”

Moreover, the shadow chancellor expressed concern over the increase in government consultancy spending, noting that the cost of hiring consultants had surged nearly fourfold in just six years. In response, Labour would strive to “slash government consultancy spending.”

Reeves addressed the contentious issue of HS2, stating that while there were calls to reinstate the northern leg of the high-speed rail project, she made no commitments to do so. Instead, she proposed that a Labour government would commission an independent inquiry into the project.

One of the highlights of her speech was a commitment to raise the national minimum wage, taking into account the real cost of living, although the specific amount was not specified.

Labour has made a concerted effort to raise Rachel Reeves’ profile in recent months, recognizing her central role in a Labour government and election campaign. The party’s choice to focus on the economy in their campaign, as opposed to healthcare, is seen as a sign of their political confidence. A senior source within Labour pointed out that elections are often decided on economic issues, signaling their readiness to engage in political battles on this front.

Reeves’ speech was introduced with glossy videos and a lavish endorsement by Mary Portas, a former government adviser during the Cameron era. Portas declared Rachel Reeves to be the best-qualified chancellor ever. The former Governor of the Bank of England, Mark Carney, praised her as a “serious economist” who understands the bigger economic picture in a video played following the speech.

Throughout her speech, Rachel Reeves outlined how Labour would stimulate economic growth. She spoke about overhauling planning rules to accelerate green energy projects, battery factories, and the development of 5G infrastructure. The plan includes hiring 300 new planners across the public sector and rewriting planning guidance to expedite the process. Decision times for major projects have increased significantly since 2012, according to Reeves, and she stressed the importance of incorporating economic growth and net zero considerations into the planning process.

The British Chambers of Commerce welcomed the proposals, with the director general, Shevaun Haviland, highlighting the significance of long-term infrastructure investment in reviving the economy. Unions broadly supported the speech, with Unison general secretary Christina McAnea commending Rachel Reeves’ “compelling vision.”

Notably, Rachel Reeves also proposed establishing an anti-corruption commissioner with the aim of recovering money lost due to fraud and waste during the pandemic.

However, during the conference, Labour faced internal divisions as delegates voted to “reaffirm” the party’s commitment to public ownership of railways and the energy industry, a motion proposed by the union Unite. Nonetheless, party sources suggested that these proposals were unlikely to be included in Labour’s next manifesto.

In summary, Rachel Reeves’ speech at the Labour conference outlined the party’s economic strategy, emphasizing responsibility, a crackdown on waste and inefficiency, and a commitment to boosting economic growth. Labour is positioning itself to contest the Conservatives on economic issues in the upcoming election, signaling confidence in their approach to key policy areas.