Support our Nation today - please donate here
News

Reeves to tout Labour wealth fund plan at start of economy-focused campaign week

17 Jun 2024 3 minute read
Shadow chancellor Rachel Reeves speaking to the media. Photo Lucy North/PA Wire

Shadow chancellor Rachel Reeves will highlight Labour’s plan to set up a national wealth fund as she kicks off a week of campaigning on the economy.

Sir Keir Starmer’s party has pledged to invest £7.3 billion in the fund over the course of the next parliament if it wins the General Election to help create 650,000 new jobs.

Ms Reeves will announce a target for the fund to unlock business investment, with it required to crowd-in a further £3 of private sector investment for every £1 of public investment.

Its investments would include £2.5 billion to rebuild the steel industry, £1.8 billion to upgrade ports and build supply chains, and £1.5 billion in the automotive industry.

Labour says the national wealth fund is central to its green prosperity plan, delivering billions in private sector green investment to help the transition to net zero.

‘Re-industrialise’

The plans would help to “re-industrialise” the UK with 650,000 high-quality jobs for plumbers, electricians, engineers and technicians created in the next five years across the country, according to the party.

The task force advising Labour on how to implement its national wealth fund would be asked to report back shortly after polling day, the shadow chancellor will confirm.

The panel, set up in March, comprises leading figures from the UK’s investment and financial services sector including former Bank of England governor Mark Carney and Barclays chief CS Venkatakrishnan.

Ms Reeves, who is expected to make a campaign visit with Sir Keir to promote the plans on Monday, said: “Labour’s plan for growth is about making Britain better off, with good jobs paying a decent wage being created right across the United Kingdom.

“The election on July 4 is a chance to deliver on that plan and to turn our economy around after 14 years of Conservative decline. The next Labour government will work hand-in-hand with the private sector to bring investment to Britain’s industrial heartlands and I have been clear that our national wealth fund will be a crucial tool in the armoury to deliver on this ambition.

“This election is about change: stability with a changed Labour Party that will make you better off or five more years of chaos from the Conservatives that will mean £4,800 more on your mortgage.”

Economic chaos

Driving economic growth was the overall focus of the manifesto Labour unveiled last week, as it sought to paint the Conservatives as the party of economic chaos.

Ms Reeves has repeatedly promised not to “play fast and loose with the public finances” as Labour attempts to shake off Tory accusations that it would “bankrupt the country”, and to portray itself as a safe pair of hands in difficult economic times.


Support our Nation today

For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.

Subscribe
Notify of
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Dr John Ball
Dr John Ball
1 month ago

This has all the hallmarks of soundbites, based on grand plans aimed at headlines but light of any value. Aside form the convenient lack of detail, two questions arise. The first is obvious – £7.3bn added to an already eye watering and record UK public debt. In addition, the plan – such as it is – assumes (hopes?) the private sector will top this up by about £21bn, from where remains opaque. The second is the task force – 1960s thinking. It is to be made of leading figures in finance and investment, people who no doubt get their hands… Read more »

Our Supporters

All information provided to Nation.Cymru will be handled sensitively and within the boundaries of the Data Protection Act 2018.