Reeves’ proposed national insurance tax hike slammed as Labour ‘manifesto breach’

Rachel Reeves has been criticised for refusing to rule out a rise in employer national insurance contributions to be announced at the Budget on 30 October.

Speaking at yesterday’s International Investment Summit, the chancellor warned of tax rises to come at the event in just over two weeks’ time. She has now refused to rule out an increase in employer national insurance contributions after weeks of speculation.

Ms Reeves said: “We will stick to the commitments we made in our manifesto.”

“But you know there is a £22bn black hole over and above anything we knew about going into the election that we need to fill, and that’s not just a one year, that persists throughout the forecast period.”

The chancellor says the government will “close that gap” whilst also sticking to Labour’s manifesto commitment to not raise taxes on working people, leaving her few high-revenue options.

But experts have called this into question, with Institute for Fiscal Studies director Paul Johnson saying a hike in employer NI contributions would be a ‘straightforward breach’ of the Labour manifesto.

Speaking to Times Radio, he added that the pledge would “almost certainly” have to be broken in some way if Labour wants to fill its public spending gap. The proposed measure would raise around £17bn, which he adds is “a big chunk of money from a relatively small proportionate change in a very big tax.”

Key Points

• Reeves criticised for possible employer national insurance tax hike

• Reeves pledges end of instability as she announces new National Wealth Fund

• Government will cap corporation tax at 25% for the rest of the Parliament

• Sir Keir takes a swipe at Boris Johnson at investment summit

Pinned: Reeves criticised for possible employer national insurance tax hike

08:09 , Albert Toth

Speculation that Labour is considering raising employer national insurance tax contributions has been renewed after Rachel Reeves refused to rule out the measure yesterday.

The hike would bring the levy up from its current flat rate of 13.8 per cent, with experts predicting it could raise around £17bn a year.

She said: “We are going to need to sort of close that gap between what government is spending and bringing in through tax receipts. But we are going to be a government that sticks to our manifesto commitments,” meaning not raising taxes on working people.

A Treasury source has also previously indicated that it is the view of the government that the move would be considered as a tax on business, and not working people, saying: “The commitments in the manifesto were clear and about protecting the incomes of working people.”

The Institute for Fiscal Studies’ Paul Johnson has called this into question, saying the move would be a “straightforward breach” of the Labour manifesto. However he added that it’s unlikely the party would be unable to avoid doing this in some way.

Shadow work and pensions secretary Mel Stride said it would be “absurd” for Labour to hike national insurance for employers and claim it was not a breach of the party’s manifesto.

Speaking to Sky News, he said Labour has “boxed themselves in” by “claiming they were not going to be a party that was going to have to put up taxes”.

ICYMI:

07:23 , Jabed Ahmed

Sir Keir Starmer has welcomed the President of Cyprus to Downing Street, after the island played a central role in early efforts to get aid into war-torn Gaza.

Cypriot president Nikos Christodoulides made a whistlestop visit to No 10 before he heads to the United Nations in New York, where he hopes to open talks aimed at ending the decades-long ethnic divide on the island.

A UN buffer zone extends across Cyprus, dividing the Greek south from the north-eastern portion of the island, which is administered by an ethnically Turkish government only recognised by Turkey.

As the two sat for the media at the start of their meeting, the Prime Minister said: “It is my privilege to welcome you here and it is fantastic we have got this opportunity to discuss issues of mutual interest, a long and very important history between our two countries.

“Both at the country to country level, but also at the people to people level.

“We have a very proud community here and it gives great strength to us as a country.”

Watch: Ex-Google chief says he was ‘shocked’ when Labour became party of growth

07:01 , Jabed Ahmed

Alex Salmond: The man who taught me political journalism is a contact sport – well before Donald Trump

05:00 , Albert Toth

The Independent’s political editor David Maddox and Whitehall editor Kate Devlin were Scottish politics reporters at the height of Alex Salmond’s powers. David writes about the political giant he knew with memories from Kate.

Alex Salmond: The man who taught me political journalism is a contact sport

Full report: Rachel Reeves boosts big business as she caps corporation tax at 25% and woos investment in Britain

04:00 , Jabed Ahmed

Rachel Reeves boosts big business as she caps corporation tax at 25%

Watch back: Keir Starmer unveils AI investments at international summit

03:00 , Albert Toth

Watch back Sir Keir Starmer’s speech to the International Investment Summit 2024 on Monday, 14 October.

Watch live: Keir Starmer unveils AI investments at international summit

Former Tory MP warns Robert Jenrick would ‘poison’ Conservative Party if he became leader

02:00 , Archie Mitchell

Robert Jenrick would “poison” the Conservative Party and wants to go further to the right than Nigel Farage, an influential former Tory MP claimed.

In a damning assessment of the former immigration minister, Matthew Parris dubbed him a “slick, smooth-tongued salesman with all the attributes of a crowd-pleaser, except the ability to please a crowd”.

Former Tory MP warns Robert Jenrick would ‘poison’ Conservative Party as leader

Kemi Badenoch faces backlash for ‘stigmatising’ autism

01:00 , Kate Devlin

Conservative leadership hopeful Kemi Badenoch has been accused of “stigmatising” autism after she endorsed a report that suggested people with the condition get “economic advantages and protections”.

The pamphlet, which Ms Badenoch launched, also claimed that they receive “better treatment or equipment at school”.

Kemi Badenoch faces backlash for ‘stigmatising’ autism

Minister ‘absolutely ready’ to engage with Elon Musk despite investment summit absence

Tuesday 15 October 2024 00:01 , Archie Mitchell

The minister in charge of social media and digital technology has insisted he is “absolutely ready to engage” with Elon Musk, despite not having spoken to the world’s richest man since taking office in July.

Peter Kyle denied the Tesla chief had been snubbed by the UK government ahead of its inaugural international investment summit, to which Mr Musk was not invited.

Minister ‘absolutely ready’ to engage with Musk despite investment summit absence

Reeves warned national insurance hike would be ‘straightforward breach’ of manifesto

Monday 14 October 2024 23:00 , Archie Mitchell

Rachel Reeves has been warned that hiking employer national insurance contributions would be “a straightforward breach” of the Labour manifesto.

The chancellor has been told by Paul Johnson, director of the influential Institute for Fiscal Studies (IFS), that the party said “very clearly” it would not make the change.

Reeves warned over ‘straightforward breach’ of manifesto if national insurance hiked

Exclusive: Brexit wine tax sparks call for consumers to pressure MPs

Monday 14 October 2024 22:00 , Kate Devlin

Customers are being urged to “urgently” pressure MPs over a post-Brexit wine tax dubbed Rishi Sunak’s “sneaky Sauvignon surcharge”.

Major wine companies such as Majestic have asked customers to write to their member of parliament to highlight the issue before Rachel Reeves‘ Budget at the end of this month – to “get this ill-conceived policy stopped before it is too late”.

Brexit wine tax sparks call for consumers to pressure MPs

POLITICS EXPLAINED: Can Reform UK ever prove themselves to be serious politicians?

Monday 14 October 2024 21:27 , Jabed Ahmed

Can Reform UK ever prove themselves to be serious politicians?

Alex Salmond’s cause of death confirmed as heart attack, says Alba

Monday 14 October 2024 20:45 , Jabed Ahmed

A post-mortem examination has confirmed Alex Salmond’s cause of death as a heart attack, the Alba Party has said.

Mr Salmond, who was Scotland’s first minister from 2007 until 2014, died suddenly in North Macedonia on Saturday aged 69.

The former first minister had made a speech at the Institute for Cultural Diplomacy Forum in the city of Ohrid before collapsing at lunch in a crowded room.

The Scottish and UK governments are working together to repatriate the ex-SNP leader’s body.

Conservative MP David Davis, who was a friend of Mr Salmond, called for the RAF to bring Mr Salmond’s body back to the UK.

The Alba Party, which Mr Salmond founded in 2021 after leaving the SNP, said it expected an update on his return on Monday evening.

Watch: David Davis chokes up in House of Commons remembering friend Alex Salmond

Monday 14 October 2024 18:37 , Jabed Ahmed

Analysis: Rachel Reeves’ had no choice but to cap corporation tax

Monday 14 October 2024 17:14 , David Maddox, Political Editor

Keir Starmer and Rachel Reeves had pinned their success on achieving economic growth in the UK. But critics have said that outside planning reforms there has been little on offer for businesses and more to be worried about especially with increased workers rights.

With the the chief executives of many of the world’s biggest businesses in London Ms Reeves had to give a concrete promise about what “stability” means for them and how it makes Britain a good place to invest.

By capping corporation tax she takes away some of the concerns about the Budget on 30 October where the language so far has suggested Labour are going after the rich. But she also provides some long term assurance for businesses wanting to invest in the UK.

This is also true of her agreeing to keep Rishi Sunak reforms like full expensing and research and development tax breaks.

More than £60million in UK investment announced at summit, government says

Monday 14 October 2024 17:04 , Jabed Ahmed

The government said a total of £63 billion of investment was committed to at a major summit in London.

The deals announced at the International Investment Summit would help create nearly 38,000 jobs, the Department for Business and Trade said.

The Labour government said the figure more than doubles the £29.5 billion committed at last year’s Global Investment Summit under Rishi Sunak’s leadership.

The Tories have claimed some of the announcements already made by the Government were in the pipeline before Sir Keir Starmer took office.

Government will “turbocharge” the UK Infrastructure Bank, Reeves says

Monday 14 October 2024 16:50 , Jabed Ahmed

The Government will “turbocharge” the UK Infrastructure Bank by converting it into the new National Wealth Fund, the Chancellor has announced.

Rachel Reeves told the International Investment Summit: “Today, we are creating the National Wealth Fund and making it the UK’s new impact investor.

The National Wealth Fund will catalyse tens of billions of pounds of private investment into clean energy and our growth industries, like green hydrogen, carbon capture and storage and gigafactories.

“From today, we are turbocharging the UK Infrastructure Bank, which will operate as our National Wealth Fund. It will be headquartered in Leeds with a bigger team, more freedom and an expanded suite of financial instruments and more economic risk capital to ensure that the National Wealth Fund’s investments can be even more catalytic.”

Government will cap corporation tax at 25% for the rest of the Parliament, Reeves announces

Monday 14 October 2024 16:50 , Jabed Ahmed

The Government will cap corporation tax at 25 per cent for the rest of the Parliament and set out a roadmap on business taxation to provide “certainty” for investors, Rachel Reeves has announced.

The Chancellor told guests at the International Investment Summit that the Government would “create a tax system that supports wealth creation and increases business investment”.

She said: “I know that providing certainty is right at the heart of that. The constant changes that we have seen in corporation tax in recent years have caused instability.

“So at the Budget, this Government will be outlining a corporate tax roadmap. We will cap the rate of corporation tax at 25%, the lowest in the G7, for the duration of this Parliament.

“We will maintain a world-leading capital allowances offer, with full expensing and the £1 million annual investment allowance, and we will maintain the current rates for the research and development reliefs which provide generous support for innovation.

“This is a vital step to deliver certainty and support businesses to grow.”

Reeves announces new British Growth Partnership within the British Business Bank

Monday 14 October 2024 16:32 , Jabed Ahmed

Chancellor Rachel Reeves has announced a new British Growth Partnership within the British Business Bank (BBB).

The partnership is expected to help bring institutional investors such as pension funds together with the BBB to make long-term, fully commercial investments by the end of 2025.

Encouraging British pension funds to invest more in the UK was a key goal of the previous government, and one the new Cabinet is also pursuing.

BBB chief executive Louis Taylor said: “By establishing the British Growth Partnership, the bank will encourage more UK pension fund investment into the UK’s fastest growing, most innovative companies.

“In addition, reforms to the bank’s financial framework, putting our £7.9 billion commercial programmes on a permanent footing, means we can flexibly reinvest our investment returns over the long term to increase growth and prosperity across the UK.”

Reeves pledges end of instability as she announces new National Wealth Fund

Monday 14 October 2024 16:31 , Jabed Ahmed

British economic instability has ended and the new Government is bringing investment and jobs back to Britain, the Chancellor has said.

In a speech closing Monday’s International Investment Summit, Rachel Reeves told the world’s biggest businesses they can look forward to “a true partnership” with the new Government as it works to boost growth.

She said: “When we said we would end instability, make growth our national mission and enter a true partnership with business, we meant it.

“The decisions which lie ahead of us will not always be easy. But by taking the right choices to grow our economy and drive investment we will create good jobs and new opportunities across every part of the country.

“That is the Britain we are building.”

Delivering on a manifesto promise, Ms Reeves announced that the existing Leeds-based UK Infrastructure Bank will be transformed into the National Wealth Fund (NWF) with £27.8 billion to invest in clean energy and growth industries.

David Davis chokes up in the Commons remembering Alex Salmond

Monday 14 October 2024 16:28 , Jabed Ahmed

David Davis has choked up in the Commons talking of Alex Salmond, who died suddenly at the weekend.

Although they had very different outlooks, the former SNP leader and the man who once vied to lead the Tory party were personal friends.

Commons speaker Sir Lindsay Hoyle also said that Mr Salmond left a “deep and lasting legacy”, as he led tributes to the former Scottish first minister in parliament.

Rachel Reeves set to take stage

Monday 14 October 2024 16:00 , Albert Toth

Rachel Reeves is set to speak to end the International Investment Summit at 4:20 pm today. The chancellor will likely highlight the investments announced as part of today’s event, including the £1.1 billion for London’s Stansted Airport.

It’s unlikely any Budget measures will be unveiled by the chancellor, with around only two weeks until the event. However, Ms Reeves may take the opportunity to reiterate Labour’s central message of growth, needing to deal with the ‘inheritance’ of the previous government, and the tough decisions ahead.

She has also faced strong criticism today against rumoured changes to employer national insurance contributions, with the IFS’s Paul Johnson saying it would represent a “straightforward breach” of Labour’s election manifesto.

Winter fuel payment row still hangs over government after 100 days

Monday 14 October 2024 15:45 , Albert Toth

As Labour ministers greet business leaders with a celebratory mood, criticism continues from other sectors ahead of the new government’s first budget on 30 October.

Campaigners and charities are maintaining pressure on Labour to scrap or tweak the cutback of winter fuel payments to include more pensioners, as it is feared millions could miss out.

Social Affairs Correspondent Holly Bancroft speaks to a pensioner set to miss out on winter fuel help this year because she is just £3 above the weekly threshold for support.

The pensioner denied winter fuel payment because she’s just £3 over threshold

Investment summit about more than Musk, Downing Street says

Monday 14 October 2024 15:30 , Albert Toth

The Government’s international investment summit is “not about focusing on any one specific person”, Downing Street said when asked why Tesla owner Elon Musk had not been invited.

It has been suggested the billionaire was snubbed after engaging in a Twitter spat with Sir Keir Starmer during rioting in the summer, when he said demonstrators were subject to two-tier policing.

Asked why Mr Musk was not attending, the PM’s official spokesman said: “This summit is not about focusing on any one specific person.

“What you can see today is 300 of the most significant investors, people who can bring significant amounts of capital to the UK, attending this summit, which is obviously hugely significant.”

Greens criticise Labour’s deregulation drive

Monday 14 October 2024 15:15 , Albert Toth

Ellie Chowns, Green Party MP for North Herefordshire, has criticised the prime minister’s promise to strip back ‘unnecessary’ regulation to boost investment.

She said: “Starmer’s pledge to investors that he will “cut red tape” is a tired cliché that, in practice, too often means harming environmental standards and workers’ rights. We’ve had fourteen years of successive Conservative governments promising to “cut red tape,” and all we have to show for it is a flatlining economy and falling living standards.

“If Starmer is serious about attracting investment to the UK, he will need a bolder approach that delivers on the “change” he promised in his election campaign. He could start by re-evaluating our relationship with our biggest trading partner, the European Union.”

Sadiq Khan: We “shouldn’t be scared” of EU single market

Monday 14 October 2024 15:00 , Albert Toth

Mayor of London Sadiq Khan is also in attendance at Labour’s International Investment Summit today, where he has spoken to reporters about Britain’s relationship with the EU.

“I’m quite clear that all successful countries do the most trade with their nearest neighbours, that’s one of the signs of success,” he said.

“We’ve got on our doorstep, not just friends and colleagues and family indeed, we’ve got a market of more than 500 million people.

“The good news is the Prime Minister spent a lot of the last three months visiting friends in Europe, whether it’s the president of France, the prime minister of Italy, the chancellor of Germany or the European Union, indeed, in Brussels.

“The current Brexit deal we have comes up before review next year. I’m hoping, unlike last time, there will be closer alignment, rather than divergence.

“We should be looking at a whole host of issues and talking about them – whether it’s a youth mobility scheme, whether it’s seeing what we can do to bring people closer together.

“I think the reality is, in the short term, we probably aren’t going to get back as members of the single market. But it’s something we shouldn’t be scared to talk about.”

Green protests outside London’s Guildhall as summit underway

Monday 14 October 2024 14:46 , Albert Toth

While ministers and business leaders gather in London’s glitzy Guildhall, several protestors have gathered outside in the grey, drizzly weather.

Those from the Green New Deal Rising group are calling for a wealth tax on the UK’s richest to fund green investment.

“Today, we showed up at the International Investment Summit to deliver a clear message: private business won’t save us,” they wrote on Twitter / X, adding: “We need public investment for public priorities”.

Another campaign group, Stop Sizewell C, is also present – protesting against the planned twin nuclear reactors in Sizewell, Suffolk.

No safety slips amid bonfire of red tape, Downing Street vows

Monday 14 October 2024 14:30 , Albert Toth

Downing Street has promised the government will not let safety standards slip amid a bonfire of red tape to speed up building and planning permission.

Asked how the Government would ensure consumer safety was not undermined in the context of the Grenfell Tower Inquiry’s conclusions on deregulation, Sir Keir Starmer’s official spokesman said: “I think this exercise is about ensuring that regulators aren’t needlessly getting in the way of growth.

“Clearly, there are very important examples of where regulators play a vital role in upholding high safety standards and clearly building safety is one of those examples, and you heard the prime minister speak about that recently in the Houses of Parliament.

“Clearly, we are not going to compromise on those things, but it’s about striking the right balance and clearly the prime minister, the chancellor, have heard lots of feedback and representations from industry about the regulatory environment that this government has inherited and they’re determined to ensure we have a pro-business, pro-innovation regulatory environment.”

Government launches new Industrial Strategy

Monday 14 October 2024 14:24 , Albert Toth

As the investment summit continues, Labour has launched a consultation into its ‘Invest 2035’ Industrial Strategy. The Green Paper sets out a 10-year plan to improve stability and investment in the UK.

The foreword by Sir Keir Starmer and Rachel Reeves says: “This Industrial Strategy will provide a launchpad for businesses. It provides the firm foundation for investment businesses have told us they need. This government believes it is our role to provide the certainty that inspires confidence, allowing businesses to plan not just for the next year, but for the next 10 years and beyond.”

“We will not repeat the mistakes of the past, with policy changing as fast as decision-makers.”

‘High-skilled’ immigration necessary for AI innovation, Starmer told

Monday 14 October 2024 14:00 , Albert Toth

Speaking to Sir Keir Starmer in a panel discussion, former Google CEO Eric Schmidt said “A pro-growth agenda would start with high-skilled immigration, which is now in place here and should be expanded.”

He adds that, as more graduates become experts in AI, it is essential the UK is able to keep home-grown experts, but also attract international talent.

Speaking earlier, Sir Keir had criticised the “consequences” of Brexit, arguing that they gave the international community the impression that the UK was inward-looking and no longer interested in building relationships.

Elton John confirmed as summit special guest

Monday 14 October 2024 13:45 , Albert Toth

Labour ministers and summit guests will enjoy a performance from Sir Elton John later today as the event wraps up. His performance was confirmed by Sir Lucian Grange, chairman and CEO of Universal Music Group.

“He’s an ambassador. He wanted to be here,” says Grainge after listing off some of the UK’s best musical exports.

“I wish you could see the politicians’ faces. We spend a lot of time in meetings, we don’t get out very often,” Ms Nandy jokingly told the audience.

Guests will also enjoy dinner prepared by three-Michelin-starred-chef Clare Smyth at the event in St Paul’s Cathedral, where King Charles II will make an appearance.

The lavish affair will perhaps raise some eyebrows given Labour’s recent row over freebies, including some ministers receiving free Taylor Swift tickets worth thousands of pounds while in opposition.

Gareth Southgate attends panel discussion

Monday 14 October 2024 13:33 , Albert Toth

Former England manager Gareth Southgate joined several other guests in a discussion on the arts chaired by culture secretary Lisa Nandy.

Responding to a question about representation in the arts, Mr Southgate said: “The beauty of sport… it is a meritocracy.”

He describes the “journey” the UK went on with the England team, which has “started to be more representative of our nation.”

“People started to recognise that we were standing for everybody,” he adds.

The footballing veteran is joined by Sir Lucian Grainge, chairman and CEO of Universal Music Group, Maria Balshaw, director of the Tate, Dr Anna Mallett, vice president of production at Netflix.

Kemi Badenoch faces backlash for ‘stigmatising’ autism

Monday 14 October 2024 13:16 , Kate Devlin

Conservative leadership hopeful Kemi Badenoch has been accused of “stigmatising” autism after she endorsed a report that suggested people with the condition get “economic advantages and protections”.

The pamphlet, which Ms Badenoch launched, also claimed that they receive “better treatment or equipment at school”.

Kemi Badenoch faces backlash for ‘stigmatising’ autism

Keir Starmer has ‘full confidence’ in under-fire transport secretary Louise Haigh

Monday 14 October 2024 13:15 , Archie Mitchell

Sir Keir Starmer has “full confidence” in Louise Haigh, Downing Street said after the prime minister disowned his Transport secretary’s remarks about P&O Ferries.

After Ms Haigh’s comments, calling P&O a rogue operator that should be boycotted, threatened to blow up his crucial investment summit, Sir Keir distanced himself from her.

But, asked whether Sir Keir had full confidence in the minister, the PM’s official spokesman said: “Yes, absolutely. The transport secretary in the run-up to the summit delivered significant investment in electric buses.

“She’s put an end to industrial disruption seen for the past two-and-a-half years that has cost the economy and commuters dearly, and she’s been driving forward reform and bringing rail services back into public ownership.”

As Sir Keir tells investors not to worry about workers’ rights – what’s in Labour’s bill?

Monday 14 October 2024 13:00 , Albert Toth

Addressing fears that some business leaders have expressed over Labour’s workers’ rights expansions, Sir Keir said: “Let me be clear: they’re pro-growth.”

Labour had been working to progress their workers’ rights package within the first 100 days of coming into power, recently tabling the bill. Here’s what it will change:

What Labour’s Employment Rights Bill could mean for UK workers

Unions express concern ahead of summit

Monday 14 October 2024 12:40 , Albert Toth

Some union leaders voiced concerns about Sir Keir’s deregulatory language ahead of today’s investment summit, likening his language to that of David Cameron in 2011 who launched a “Red Tape Challenge”.

“The coalition also had a massive shake-up of red tape, and ended up taking out loads of safety regulations,” one union source told The Guardian.

The issue was drawn into sharp criticism following the publication of a report into the Grenfell Tower fire, which found lax safety regulations and enforcement contributed to the tragedy.

Acknowledging this during his keynote speech, Sir Keir said regulation must not inhibit growth and investment, indicating a desire to strike a balance.

As PM criticises Brexit, post-EU wine tax sparks call for consumers to pressure MPs

Monday 14 October 2024 12:20 , Albert Toth

Customers are being urged to “urgently” pressure MPs over a post-Brexit wine tax dubbed Rishi Sunak’s “sneaky Sauvignon surcharge”.

Major wine companies such as Majestic have asked customers to write to their member of parliament to highlight the issue before Rachel Reeves‘ Budget at the end of this month – to “get this ill-conceived policy stopped before it is too late”.

Brexit wine tax sparks call for consumers to pressure MPs

£1.1 billion Stansted investment announced

Monday 14 October 2024 12:03 , Albert Toth

A £1.1 billion investment into London’s Stansted airport over five years has been announced by the prime minister at the International Investment Summit.

Of this, £600m will go towards expanding the terminal by a third, while £500m will be spent on improving the terminal and the airport estate.

The investment will also fund a 14.3 megawatt on-site solar farm to meet the airport’s energy demands.

Transport Secretary, Louise Haigh, said: “We have been steadfast in our commitment to help British businesses grow and in turn boost the UK’s economy. This announcement is a clear signal that Britain is open for business.”

Starmer: NHS must be reformed

Monday 14 October 2024 11:43 , Albert Toth

Asked about healthcare, the prime minister says the UK is rightly proud of the NHS, but that if Labour put more money into the health service “as it is,” it won’t be improved.

Instead, he says, it must be reformed and reimagined through AI and tech. The prime minister says, for example, he has seen AI used for early cancer detection.

He adds that it is his ambition for people to look back on the current government in 50 years and be as proud of its record on healthcare as the postwar Labour government, which famously established the NHS.

Pinned: Ex-Google chief says ‘I was shocked when Labour became strongly in favour of growth’

Monday 14 October 2024 11:33 , Albert Toth

The former boss of Google has said he was “shocked” to hear Labour has become “strongly in favour of growth”.

In a culmination of Sir Keir Starmer’s attempts to restore his party’s relationship with business, which collapsed under Jeremy Corbyn’s leadership, he is sat alongside the tech giant’s former CEO Eric Schmidt and GSK chief Dame Emma Walmsley pitching for investors to pile money into Britain.

The PM’s inaugural investment summit, which has brought hundreds of executives from some of the world’s biggest firms to London, is a sign of how much he has changed the Labour Party since succeeding Mr Corbyn in 2020.

Responding to Mr Schmidt’s apparent jibe, Sir Keir said “wealth creation is the number one mission of a Labour government”. To which Mr Schmidt replied: “Did you hear that?”

It is hard to imagine a similar event taking place under Mr Corbyn’s leadership of the party, when business chiefs shunned Labour for being anti-business, something Mr Corbyn claimed was “complete nonsense”.

Sir Keir address the “consequences” of Brexit

Monday 14 October 2024 11:24 , Albert Toth

Speaking about the UK’s world standing, Sir Keir says that Brexit adversely affected the country’s international reputation.

He says that regardless of why people voted, “the impression was given that the UK was more interested in turning in on itself, becoming more isolated, and less interested in the outside world like we once were.”

The PM says that he will “reset” to make it clear to investors that this is not the case and that the UK wants to resume its former place on the world stage.

He adds that he is looking to build bridges with counterparts in Europe, having met several leaders across the continent in his first 100 days.

Sir Keir is joined by former Google CEO Eric Schmidt

Monday 14 October 2024 11:19 , Albert Toth

Moving to a different format, Sir Keir is joined by Eric Shmidt, former CEO of Google, for a panel discussion between the two.

Asked what he wants to achieve most in power, Sir Keir says the government is “mission-driven,” with growth being the number one most important thing.

Responding to the prime minister’s argument that now is the right time to invest, Mr Schmidt says “I was shocked when Labour became strongly in favour of growth.”

“Maybe you need a minister of anti-regulation,” he jokes, before moving to the more serious point that a democracy like the UK has “so many ways in which people can say no.”

He says the business community would rather there was a more centralised decision-making process, telling the prime minister that delay “is killing you.”

Sir Keir takes a swipe at Boris Johnson at investment summit

Monday 14 October 2024 10:46 , Albert Toth

Keir Starmer took a side swipe at Boris Johnson’s infamous “f*** business” comment and promised to turn a page on the chaos of Brexit in his keynote speech to business leaders at the investment summit.

The prime minister acknowledged that Britain’s standing in the world has been damaged as a result of the EU referendum result in 2016 and what followed but has made a priority to fix it.

He told the audience: “We are determined to improve [Britain’s global standing]. Determined to repair Britain’s brand as an open outward looking confident trading nation.

“I see this as diplomatic necessity and I think it is clear what I priority I have given it in the first 100 days of this government all around the world.

“People want to know that Britain can be a stable trusted, rule abiding partner as we have always been.

“But somehow during the whole circus that followed Brexit the last government made a few people less sure about.

Needlessly insulting our closest allies. And of course a few choice Anglo Saxon phrases for business.

“Well no more we have turned the page on that decisively and we will use that reset for growth.”