How Labour can boost British investment

{"text":[[{"start":null,"text":"

"}],[{"start":8.54,"text":"In her first major speech as Britain’s chancellor of the exchequer, Rachel Reeves underscored the new government’s dogged focus on delivering long-term economic growth, declaring it a “national mission”. "},{"start":18.757,"text":"With sluggish productivity for well over a decade, promises to drive growth are, however, much less important than the plan to deliver it. "},{"start":26.174,"text":"Labour’s growth strategy is still nascent, though its manifesto and early announcements give a flavour of its plan. "},{"start":31.916999999999998,"text":"One essential element is to unlock investment. "},{"start":34.597,"text":"Without a sustained increase in both public and private capital expenditure, Labour’s national mission will remain a pipe dream. "}],[{"start":42.12,"text":"The UK has languished at the bottom of the G7 table for total investment for 24 of the past 30 years. "},{"start":48.449,"text":"Investment is needed to revamp roads, rail and energy infrastructure, and drive innovation. "},{"start":53.842,"text":"This boosts productivity growth and wages. "},{"start":56.434,"text":"Britain’s investment problem is multi-faceted, and no single lever can unleash it. "},{"start":61.013999999999996,"text":"But three catalysts will give Labour a strong chance of success: stabilising the policy environment, creating investment opportunities, and mobilising money. "}],[{"start":70.42,"text":"To some extent, the government is already delivering on the first. "},{"start":74.249,"text":"“Stability” was central to its campaign messaging, and its large majority also makes Britain look more appealing to investors while political uncertainty continues in peer nations. "},{"start":83.404,"text":"Quick appointments and early policy announcements give investors confidence. "}],[{"start":88.14,"text":"Many investors still need clarity, though, on other aspects of Labour’s agenda before making commitments. "},{"start":94.244,"text":"One is how it plans to improve relations with the EU. "},{"start":97.337,"text":"A second is how newly planned bodies — including a Regulatory Innovation Office, which aims to speed up regulatory decisions — will operate in practice. "},{"start":105.779,"text":"Investors are also seeking assurances on the government’s plans for capital gains tax, which some fear it will raise. "}],[{"start":112.84,"text":"Alongside stability, Britain needs to open up investment opportunities. "},{"start":117.144,"text":"The government has made a promising start here. "},{"start":119.62400000000001,"text":"On Monday, Reeves outlined efforts to overhaul the country’s gummed-up planning system. "},{"start":124.379,"text":"This included commendable plans to elevate the importance of economic benefits in assessing development plans, provide support for more planning officers and a review of the National Planning Policy Framework. "},{"start":134.572,"text":"If this helps to simplify the system, it would remove a significant barrier to cross-industry investment. "},{"start":139.939,"text":"Another hurdle is skills shortages, which require the government to design a more flexible training system. "}],[{"start":146.33,"text":"Finally, to turbocharge investment, the government must do a better job of channelling financial resources. "},{"start":152.55900000000003,"text":"Reeves used her speech to warn of the dire state of public finances, which only reinforces the importance of leveraging private financing sources for investment. "}],[{"start":161.75,"text":"A £7.3bn National Wealth Fund, which will provide cornerstone funding to support private sector investment, is encouraging. "},{"start":169.742,"text":"The fund’s task force on Tuesday suggested extending investments into “wider sectors”, beyond the initial focus on decarbonisation, and to entrench operational independence from the government. "},{"start":179.497,"text":"Provided this does not result in small-scale scattergun investments, this sounds sensible. "},{"start":184.489,"text":"The government must simultaneously pursue efforts to liberate the country’s vast pension savings for capital investment. "},{"start":190.557,"text":"A further source of funding is foreign investment. "},{"start":193.174,"text":"Here, a “concierge service” could help prospective investors navigate regulatory issues and boost the country’s appeal. "}],[{"start":200.42000000000002,"text":"To overturn decades of under-investment, the government will have to spin many plates. "},{"start":205.11200000000002,"text":"It has got off to a decent start. "},{"start":207.104,"text":"But if it is to fund public service renewal from economic growth, delivering on all aspects of the investment agenda will be crucial. "}],[{"start":213.76000000000002,"text":""}]],"url":"https://creatives.ftacademy.cn/album/162500-1720583423.mp3"}