Rachel Reeves said Labour will cut regulations to unlock £50bn a year in business investment and grow the economy, but “won’t crash markets like Liz Truss”.
The shadow chancellor is setting out plans to boost infrastructure spending in a bid to “get Britain building again”.
And, batting of a suggestion she “sounds like” the short-serving former prime minister, Ms Reeves said: “But without the unfunded and uncosted commitments that crashed the economy.”
She will use her speech at Labour conference on Monday to set out plans for an overhaul in planning rules to speed up critical infrastructure projects such as green energy, 5G and battery factories.
Elsewhere at Labour’s conference in Liverpool, shadow foreign secretary David Lammy will tell delegates that Labour will “reconnect” Britain with the world after Angela Rayner opened proceedings on Sunday by pledging a massive boost to social housing.
In her speech, Ms Reeves will say the party could offer incentives to so-called “nimbys” to persuade them to allow new housing and green energy projects to proceed, which could mean cutting energy bills for those living next to developments.
She is expected to say that a Labour government will “make sure that when a local community hosts critical national infrastructure, they will feel the benefits, including lower energy bills”.
Ms Reeves will also make the ambitious pledge of restoring business investment as a share of GDP to the level it was under the last Labour government. This would mean an additional £50bn extra investment every year by the end of the decade – the equivalent to £1,700 per household.
Ms Reeves will vow to tackle “head on the obstacles presented by our antiquated planning system” – noting that decision times for national infrastructure have increased by 65 per cent since 2012, now taking an average of four years.
Labour will vow to fast-track the planning process for priority growth areas of the economy, including battery factories, laboratories and 5G infrastructure.
There is a promise of “clearer national guidance” on engaging with local communities. There will also be money for 300 new planning officers to speed up decisions, raised by increasing the stamp duty surcharge on non-UK residents.
Starmer and Reeves have been busy ‘wooing’ donors and investors— (PA Wire)
Arguing that it is time for a Labour government “siding with the builders not the blockers”, Ms Reeves will tell delegates: “The Tories would have you believe we can’t build anything anymore. In fact, the single biggest obstacle to building infrastructure, to investment and to growth in this country is the Conservative Party.”
Earlier, in an interview with the Sunday Times, Ms Reeves suggested the party could offer incentives to so-called “nimbys”, to allow housing development in their area, as well as onshore wind farms or electricity pylons. “I think that people deserve something in return,” she told the paper. “It’s the same with housing.”
Meanwhile, Tory donor John Caudwell, the Phones4u founder, accused Rishi Sunak of being “short-sighted” over the decision to scrap HS2’s northern leg.
Mr Caudwell – who donated £500,000 to Tories, but has deserted them over the watering down of net zero policies – told The Independent he might give to Labour.
Phones4u founder John Caudwell suggested he might give to Labour if the party invests in net zero— (PA)
Asked about the HS2 move, the business mogul said he was “disappointed”, adding: “Once we’d got into this project to join the north to the south we really should have carried on with it. We can’t be short-sighted all the time and drop out of things that don’t suit us today.”
Mr Caudwell accused Mr Sunak of “not showing leadership” on net zero and said he would give to any party that commits to green investment. “If we lead the world in environmental technology, then we’ll grow Britain’s GDP massively.”
The entrepreneur said there was “discontent” with the Tories among businesses and he added: “If I had run my business the way the government is running the country I would never have prospered – I might even be bankrupt.”
Shadow business secretary Jonathan Reynolds will claim Labour is now “the undisputed party of business”, as he joins Ms Reeves and Keir Starmer at a forum for corporate leaders on Monday. Chief executives from top companies such as Octopus, Microsoft and Ikea will attend, as Sir Keir continues his efforts to “woo” business chiefs.
Meanwhile, speaking in Liverpool on Sunday, Ms Rayner told Labour Party conference she wanted to “stare right back” at the Tories “looking down” on council tenants.
The opposition’s deputy leader claimed Labour would deliver “the biggest boost to affordable and social housing for a generation, and that includes council housing”.
Deputy Labour leader Angela Rayner pledged to protect workers’ rights— (PA Wire)
Ms Rayner said: “The Tories look down on people living in social housing. Well, I say, let’s stare right back and never be ashamed.” She also called for a boost to wages as she said the UK is “not a trickledown nation”.
Meanwhile, shadow foreign secretary David Lammy is expected to tell the party’s conference that a government led by Keir Starmer would “reconnect Britain for its security and prosperity”.
“Delegates, the Conservatives’ moth-eaten, laissez-faire economics has made Britain poorer. No proper plan for industry. No proper plan to secure critical minerals. Not net zero. Just zero,” he will say.
“Last month Rishi Sunak became the first prime minister in a decade to skip the UN General Assembly. While world leaders gathered for climate week, Sunak stayed in London to row back on climate and make up nonsense about seven bins.”
Mr Lammy is expected to contrast the Tory approach with Labour’s plan, saying that “Keir Starmer won’t just turn up” to such international gatherings of world leaders, but will “stand up for Britain in the world”.
Responding to Ms Reeves’ pledges, Tory chairman Greg Hands said: “If Labour had any intention of making long-term reform, they would support new building projects – instead, just weeks ago, they tried to block our plans to build 100,000 new homes.”
He added: “Labour’s only plan to grow the economy is to borrow an extra £28bn a year, increasing debt and inflation.”
