Rachel Reeves speech to business leaders at Rolls Royce – The Labour Party

28 May 2024

In just over a month, citizens of the United Kingdom will have the opportunity to cast their ballots.

To make a deep decision about the future of our nation.

What better place is there to contemplate what lies ahead than right here at Rolls Royce's location in Derby?

Stepping away from the limited focus of politics in the present, and ignoring the negativity surrounding us, this business perfectly exemplifies a top-notch British establishment.

... an internationally recognized name known for its outstanding quality...

...which even today leads the way in developing innovative technologies crucial to addressing the issues posed by a rapidly evolving world.

From the advanced submarine technologies that are vital for military defense, to the progress being made in creating carbon neutral aviation that is advancing the fight against climate change.

And a company collaborating with locally established small and medium-sized businesses in every part of its supply network...

... that has developed strong connections in this urban area for over 100 years.

Our enterprise is founded on a respectable history that we can feel proud of, and we have a well-defined plan for the future that we can confidently put our faith into.

Being the Shadow Chancellor has given me the amazing opportunity to journey across the country and connect with inventive, enterprising people and successful executives from various parts of the United Kingdom.

During times when the economy is at its toughest, they fill me with tremendous hope.

I have a straightforward idea to share with you today:

The Labour Party of today is now the primary choice for British business, which reflects a significant alteration in their ideology.

I aim to outline the main economic divide present in this election and highlight the decision facing the citizens of Britain on July 4th.

The Conservative Party will create an additional five years of disorder, resulting in a decline in the livelihood of common people.

Achieving consistency amidst a modified Labour Party.

On the day of voting, Rishi Sunak has a specific message that he wants to convey to you.

He's already expressing it.

The strategy is functioning effectively, therefore, do not revise the path at present.

The disruption and uncertainty caused by Liz Truss was only a temporary setback.

The root cause of the major issues we encounter are due to worldwide happenings - it's not his responsibility whatsoever.

He will advise not to make a judgment based on a short period of time, as in 49 days, when it concerns a 14-year period.

I am determined to confront that challenge.

Even though it is correct that the issues that have affected us originate from all over the world, our special vulnerability to those problems...

The causes behind why we have experienced more severe impacts compared to similar nations…

...due to the financial consequences brought about by the pandemic, followed by the occurrence of inflation and a surge in energy costs...

The reasons for this can solely be clarified by decisions taken by Conservative administrations in our own country.

Since the Prime Minister desires this election to revolve around the decline of inflation this month…

...he fails to disclose the point at which it began to increase:

During his term as Chancellor;

Even prior to the Conservatives striving to decrease taxes for the wealthiest individuals, they caused an increase in interest rates and mortgage expenses.

He fails to specify the exact time when it reached its highest point as well...

During his term as the head of government, he was in charge.

He fails to acknowledge the families and companies suffering from the effects of the Conservative party's mishandling of the economy in present times.

Similar to the household I encountered in Redcar:

The father is undergoing an apprenticeship, while the mother is employed in a grocery store.

...who spend each night discussing finances, as there is insufficient money to cover their expenses.

The proprietor of a petite enterprise located in the vicinity of Milton Keynes...

The business owner is extremely eager to grow her business, but she is up against a set of business fees that are working against her.

Just a short distance away, the staff members at Alstom, whom I had the opportunity to meet only a few months ago...

…experiencing the unpredictability that arises…

…if the authorities refuse to plan for the future in collaboration with enterprises and labor unions, adopting a far-sighted outlook…

The singular accountable method to financial strategy.

The Conservative party is showing disrespect towards the millions of individuals who are currently coping with the outcomes of their shortcomings.

However, we will not allow them to avoid the consequences of their actions.

It is only fair to assess the Conservatives based on the outcomes of their 14-year tenure.

In just five weeks, the upcoming general election will provide the British citizens with an opportunity to evaluate the fourteen-year economic turmoil and deterioration that took place under the governance of the Conservatives.

Over the course of fourteen years, taxes have risen to their highest levels since seventy years ago.

The national debt has increased by over two times.

After the awful mini-budget, the usual homeowner who is refinancing this year will have to pay an additional £240 each month.

Public services are in a state of crisis – citizens are being requested to allocate more of their income, but witnessing a decrease in the quality of the services.

The economy is facing a decrease in growth.

There are twelve different strategies for achieving expansion, but each succeeding one has a smaller return than the one before it.

Let me give you an idea of how significant this is:

If the UK economy had increased at the standard pace of the OECD economies during the Conservative Party's rule, it would have a supplementary value of £150 billion.

Every household will receive an extra £5,000.

Offering an extra £55 billion in funding for our public services.

This is their history, and they ought to be evaluated based on it.

The economy has not been successful under the Conservatives.

The strategy is not successful.

The fact that Rishi Sunak has chosen to hold an election ahead of schedule is a strong indication of this.

If he lacks faith in the success of his strategy, why should you trust it?

Although they claim that Liz Truss had no involvement with them, their actions suggest otherwise.

They have failed to absorb the meaning or significance of the situation and have not changed their behavior accordingly.

They are completely in agreement, having the same understanding and working toward the same goal.

The Prime Minister seems to have lost focus on his priorities and it's unclear what he will do in a last attempt to address his issues.

Failing to follow through with the commitments he has pledged for the past couple of years.

Instead, the proposal is to provide £64 billion in tax cuts that are not yet backed by funds.

They presented another one recently.

The Conservatives have not disclosed their plan for financing those initiatives.

What reductions will they implement in the provision of services for the community?

Which additional taxes do they plan to increase?

Or will they be financed by taking on even more debt?

Why should anybody trust them when the tax load has hit the maximum point in seventy years?

Make no mistake, if the Conservative Party is given another five years, it will pose the greatest threat to the British economy.

I have much grander aspirations for the United Kingdom.

I believe that we don't require impractical economic theories to envision and aspire for a brighter tomorrow, as evidence of progress is evident in our surroundings.

However, we must have alterations.

Thanks to Keir's leadership, we have transformed the Labour Party in order to create a favorable opportunity for making a positive change in our nation.

Providing a government that supports both workers and businesses, acknowledging that the prosperity of each is interconnected.

A group of people who comprehend commerce.

This is effective for companies.

I'm not a politician who views the private sector as something negative or an obligatory burden.

I have experience working for companies that are not owned or run by the government.

Prior to my involvement in politics, I was employed in the financial sector in the region of West Yorkshire.

I am aware of the positive impact that a thriving business can bring to communities like those.

I am aware that the prosperity of businesses, whether they're big, medium-sized, or small, is crucial for economic advancement. There isn't any other means to achieve it.

I am not referring to the outdated beliefs of the past that promoted the idea of trickle-down economics and a free market system.

...however, a fresh feeling of collaboration amidst the government and industry.

A strategy suitable for a world that is less predictable.

I realize that there is no rule or regulation that I can make known...

There is no scheme that can be devised in the headquarters of British government, known as Whitehall...

... that cannot be enhanced by interacting with the industry.

Our statement of beliefs and ideologies will reflect the involvement and participation of our team.

My aspiration is to manage the most business-oriented and development-oriented Treasury that our nation has ever witnessed.

The main objective is to concentrate solely on enhancing the lives of individuals who work.

Over 120 influential business executives have shown their backing towards a Labour government by signing a letter today.

In the business world, it is increasingly acknowledged that Labour makes a suitable collaborator for companies.

The celebration of progress and innovation.

A couple of years back, it would have been a surprise to hear such remarks from the Labour Party.

Consider the significant progress we've made within the span of four years under the guidance of Keir.

If we can alter this gathering, in order to return it to focusing on the needs of laboring individuals;

If we can bring it back to the middle ground of politics;

If we can attract more businesses to support Labour;

Afterwards, I am aware that it is possible to revive commerce in the UK.

In order to attract more investments to the United Kingdom.

In order to revive the economy of Britain and make it prosperous again.

To restore optimism to the United Kingdom.

If we move our businesses back to Britain, we can create a brighter future for those who work there.

No matter what the extremists on the left and right claim, it is not a matter of choosing between one or the other.

The Labour Party comprehends the significance of business prosperity in providing excellent job opportunities, and how the acquisition of high-quality employment is crucial to ensuring successful businesses.

Revitalizing the UK economy by attracting more businesses to the country can result in the generation of well-paying job opportunities.

Attracting funds for the development of robust neighborhoods and prosperous commercial areas is essential.

Increase the amount of cash that individuals have available to them.

Feel a sense of accomplishment knowing that products and services produced in the UK are being shipped globally.

Our strategy for expansion revolves around establishing strong relationships with commercial entities.

A government with a clear purpose, ready to confront the significant issues ahead and grab hold of the chances that lie ahead.

A government should base all of its future plans on economic stability as the foundation.

This election presents a very obvious decision: either vote for a party that embraces chaos (i.e. the Tories) or go for the one that promotes stability (i.e. Labour). It's important to remember that stability can still bring about change.

We need to ensure that our financial situation stays steady and prevents another occurrence of the mini budget and its negative impact on households' monetary resources.

Consistency is essential to allow both families and businesses to make long-term plans and prepare for what lies ahead.

…thus, we can unite the government, corporations, and labor force towards a shared objective…

...to confront the significant obstacles we face today.

This will be supported by strong financial regulations that will decrease debt by the conclusion of the parliamentary term.

I will never take risks with the government's finances because it puts the money of families in danger.

We have begun the way we intend to continue:

I've made it crystal clear that we'll be ensuring that every policy we put forth, as well as every statement in our platform, is accounted for and financed in its entirety.

No exceptions, no excuses, no conditions.

That's the approach I'll adopt while working at the Treasury.

Public funds ought to be utilized with equal diligence as our personal finances, considering that it belongs to the taxpayers.

As I was raised, my mother would often be found sitting at the kitchen table meticulously going through her bank statements and receipts with a comb.

We weren't in a dire financial situation, but we didn't have any extra money to spend.

My mother valued every single penny.

I comprehend your viewpoint completely - the fundamental examination for whomever possesses the position of Chancellor is to impart that mentality towards the national economic resources.

When the economy of Britain thrives, strong institutions remain the backbone of stability, just as they always have.

I began my profession as an economic analyst at the Bank of England.

I understand the importance of stability and its detachment from temporary political decisions in terms of achieving economic prosperity and combating inflation.

Labour refuses to participate in the Tory's scheme to bring down the Treasury or the Bank of England, and neither will I.

I am going to present a fresh financial constraint;

If a government decides to make long-term changes to taxation and spending...

The independent Office for Budget Responsibility will make a prediction that will affect the subject.

To ensure that there is no recurrence of the mini budget.

The concept of stability should encompass other aspects as well. This topic has been reiterated by numerous companies as highly significant.

Assurance in our tax scheme The certainty of our tax system is of paramount importance to all taxpayers. This confidence ensures financial stability and predictability for individuals and businesses alike. A reliable and secure tax system is essential for the government to gather necessary funds for necessary programs and services. Without assurance in our tax scheme, taxpayers will be hesitant to invest money, start businesses, and employ workers. Business growth and economic progress will be jeopardized. Individuals may also become discouraged when filing their taxes, which are already considered a complicated task. Consequently, it is essential to have transparency and predictability in our tax system. This will allow individuals and businesses to plan ahead and allocate resources more efficiently. It will also help to build trust between taxpayers and the government, fostering a positive relationship between both parties. To achieve this, governments must provide clear and concise tax laws, regulations, and guidance. The tax authorities must also offer support and assistance for taxpayers when needed. Transparent and predictable tax schemes, along with efficient and friendly tax administration, will ensure certainty in our tax system. A dependable tax system will lead to a stable economy, financial growth, and a better quality of life.

That's the reason why we have pledged to release a plan for business tax, known as a roadmap.

… during the period of time that the parliament lasts, in the initial half-year of a Labour-led administration;

This is why the maximum amount of corporation tax will remain the same throughout the next parliamentary term.

This is the most affordable tariff compared to the economies in the G7 group.

If our ability to compete is ever at risk, we will take action.

Consistency will serve as the foundation for all of our actions.

However, just being stable doesn't suffice.

Securonomics includes a fundamental component that I consider essential.

A fresh method has been introduced that acknowledges the need for innovative solutions to economic issues in our era of uncertainty.

It is crucial to have both steadfastness and a strategy to address our insufficient investment levels.

In today's world, Britain is the sole country within the G7 that has investment levels below 20% of its GDP.

I understand that the government cannot solve this problem alone. Business investment is the primary driver of economic growth.

A fresh collaboration between the government and businesses is set to channel investment.

Incorporated into a contemporary industrial plan;

In a fresh National Prosperity Fund...

The administration is putting in money to attract private investors worth tens of billions of pounds.

...to generate employment opportunities that are forward-thinking, reduce expenses, and attain autonomy in energy.

We shall also require modification.

It's time to face the tough choices head-on and stop avoiding them.

We should not avoid confronting powerful entities anymore.

Stop settling for the current state and believing it's the best it can be.

Therefore, we intend to make changes to our political system...

... transferring authority away from Westminster to give more autonomy to our community and district leaders to better serve their respective regions.

Our intention is to enhance the skills system by implementing changes.

... to provide an opportunity for employed individuals to thrive in a transforming work environment...

...substituting the Apprenticeship Levy with a fresh Growth and Skills Levy.

We intend to make changes to our planning system…

We are confronting the most significant challenge to our progress and investment by tackling it directly, in order to encourage construction in the UK once more.

We are committed to introducing changes to enhance job security through a fresh approach named as the New Deal for Working People.

We are planning to strengthen our connection with the neighboring countries in the European Union. This is aimed to make it easier for businesses in the UK to deal with the various administrative tasks and regulations.

Consisting of a fresh accord pertaining to veterinary matters, a pact concerning the procurement of travel visas, as well as the acknowledgement of each other's professional credentials.

You're going to frequently hear me use those three phrases.

As they comprise the essential components of a bona fide strategy for tomorrow.

Another option instead of slow deterioration under control.

I am now able to state with certainty that the Labour Party is the innate political group for the business sector in Britain.

In the upcoming election, the decision is clear:

The Conservatives have started a cycle of chaos and decline that will continue for another five years.

Perhaps a transformed Labour Party;

Prioritizing the importance of stability to benefit individuals who are employed.

Our main focus for this election will be centered around the economy.

Each day we'll reveal the harm caused by the Tories...

The additional harm they may cause.

We will present Labour's substitute.

There are five important goals that need to be achieved in order to renew our nation over the next ten years.

And here are six initial actions to lead towards a more improved Britain.

Reducing waiting periods in the NHS by creating 40,000 additional appointments every week.

Introducing a fresh Border Security Command that will obliterate unlawful gangs and reinforce our borders.

Establishing a freshly created energy company, Great British Energy that is owned by the public and produces clean power;

Putting a stop to disruptive conduct Antisocial behaviour is a real issue for society. Employing measures to stop this kind of conduct is essential. When individuals behave rudely, violently, or irresponsibly, people are put in danger. It is prudent to have rules and regulations in place which penalize antisocial conduct. This will help foster a better community.

Hiring around 6,500 fresh educators;

All thoroughly budgeted, all adequately financed;

All of those aspirations that rely on a strong economic foundation.

The building blocks for ten years of rejuvenation for our country.

Being the Chancellor of the Exchequer would be the highlight of my life.

Don't indulge in your social position.

Not intended as a temporary stop in a professional journey;

I am aware of the accountability that will be associated with it.

I am aware that it will be challenging.

Achieving the objective will require a significant amount of effort and perseverance.

And it will demand tougher decisions.

I'm prepared for it.