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Rachel Reeves suggested New Labor was not doing enough to support ordinary workers or rein in business as she outlined her vision for Britain’s economy.
The shadow chancellor argued that failing to boost Britain’s growth would help the far right and left if “mainstream politics cannot provide answers to our predicament”.
But he moved to counter Conservative claims that Labor cannot be trusted, pledging to maintain Jeremy Hunt’s policies on inflation and public finances, and reassuring businesses that economic stability remains a top priority. Ta.
Delivering his annual Mace speech at City, University of London on Tuesday night, Reeves pledged to include officials working on economic growth in the budget process if he takes over at the Treasury after the general election. He criticized the department’s focus on making ends meet.
She praised the achievements of the last Labor government, but said: “The analysis on which it was based was too narrow. Stability was a necessary but not sufficient condition for generating private sector investment. .
“While the poorly regulated financial sector can generate huge amounts of wealth, it also poses serious structural risks. And globalization and new technologies are not only increasing inequality, but also reducing it, displacing people. It can liberate but also disenfranchise, create good jobs but also displace people.”
Ms Reeves warned that there was “too much anxiety” in the governments of Tony Blair and Gordon Brown, adding: National and Westminster politics. ”
The Shadow Chancellor confirmed there would be no change to the Bank of England’s current target of keeping inflation at 2%, citing “the urgent need to rebuild the UK’s public finances to give it more room to respond to future shocks”. emphasized.
He said he would create fiscal rules that would force the Treasury to reduce the size of the national debt within five years of enactment, and would “end the practice of allowing Treasury ministers to abolish rules at any time, with exemptions”. Ta. The rules would only be suspended if the OBR declared the UK to be in economic crisis. ”
But she also pledged to reinstate a requirement for the Bank of England to consider the need to tackle climate change when making decisions, which Mr Hunt banned.
Rather than increasing funding for services in the short term, Reeves vowed to be more interventionist and work with businesses to help expand key industries.
“Governments and policymakers are now recognizing that it is no longer enough for states to simply stand back, let markets decide for themselves, and redress occasional negative externalities,” he said. There is,” he said.
And defending the Labor government’s focus on economic growth as its main objective, the Shadow Chancellor warned: It’s not just the living standards of working people. Both, but not just Britain’s competitiveness in a rapidly changing world, are at stake. But also for the health of our democracy. ”
She blamed politicians’ failure to raise the living standards of their voters on “the rise of populists who offer blame rather than answers.”
The trade union Unite, one of Labor’s biggest funders, slammed Mr Reeves.
General secretary Sharon Graham said: “Labour needs to focus on delivering good jobs, public services and dignity in retirement, rather than glossing over abstract economic concepts like GDP growth.” Ta.