Fixing Brexit will not on its own boost the economy, Keir Starmer admitted today.
Critics have blamed quitting the EU for the UK’s slow growth rate, and called for closer ties with the bloc to boost Britain’s performance.
But, outlining details of his “mission” to give the UK the fastest sustained growth rate in the G7, Mr Starmer said the country had been lagging behind rivals even before the chaos unleashed by the 2016 EU referendum.
Addressing the UK Finance trade body in the City of London, he said: “We are fooling ourselves if we think that the only problem with growth is Brexit.”
Blaming nearly 13 years of Conservative and Tory-led rule, the former Shadow Brexit Secretary warned: “We haven’t had meaningful growth in any of those 13 years.
“The problem we have on growth and skills and investment predated Brexit, and therefore to simply say the problem is Brexit, the answer is Brexit, I think fails to deal with the underlying issue which is so important, about investment and stability.”
Quizzed about boosting growth while also trying to wean the UK off cheap foreign labour, Mr Starmer said increasing the skills of British citizens was key.
“We do have to get ourselves off the idea that migration is the answer to all of our problems,” he said.
“We have had a skills problem in this country for decades.”
Simply bringing over tens of thousands of migrants to boost the economy was a “sticking plaster”, he added.
He also said growing the economy would hike wages and help families through the cost-of-living crisis.
“You’re not really going to get higher living standards, higher wages, unless you have a proper strategy for growth,” said Mr Starmer.
As Prime Minister Rishi Sunak and European Union Commission President Ursula von der Leyen prepare to seal a deal on the Northern Ireland Protocol, Mr Starmer pledged Labour’s support for a pact - and backed an ongoing role for the European Court of Justice.
“It's almost inevitable that the ECJ will have to play some part in this - I think the Prime Minister recognises that, the Government recognises that - but we've got to make progress,” he said.
“We haven't seen the deal yet but I'm completely across what the issues are and what the practical solutions are.
"Frankly, any step in those directions is going to be an improvement on what we've got, which is why I can say with confidence we expect to be able to back the deal.”
He said “a fixed Brexit deal" was needed, calling for a “reset relationship with the EU, with the whole of the country, not just Northern Ireland”.
Following the speech, Mr Starmer and Shadow Chancellor Rachel Reeves hosted a roundtable of business guests including Dragons’ Den star Deborah Meaden, former Tesco chairman John Allan and ex-Bank of England Governor Mark Carney.
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