Election 2024: Labour will seek mandate for growth with ‘wealth creation’ manifesto
Sir Keir Starmer will seek a “mandate for economic growth” as he unveils Labour’s general election manifesto with a pledge to “be the party of wealth creation”.
The Labour leader will launch the document in Manchester today where he will promise the party in government will be “pro-business and pro-worker” and “laser-focused on our cause”.
Making the economy the lynchpin of the party’s pitch to voters, after Labour made economic stability the first of its six ‘first steps’ for government, Starmer will say: “Wealth creation is our number one priority. Growth is our core business – the end and the means of national renewal.
He will promise voters that his plan is fully costed and funded, saying: “The mandate we seek from Britain at this election is for economic growth. This changed Labour Party has a plan for growth. We are pro-business and pro-worker. The party of wealth creation.”
The manifesto, Labour said, is built on Starmer’s five missions, with its first six steps for change setting out how they will begin to deliver on them, with a ‘tax lock’ – promising not to hike rates of income tax, national insurance or VAT – built in.
It comes after the party previously pledged the manifesto would not contain any tax rises that have not already been announced, which are to charge VAT on private school fees, abolish the non-dom tax status and close ‘loopholes’ in the windfall tax on oil and gas companies.
The party says its plan to kickstart Britain’s economy – “the only route to improving the prosperity of our country” – is focused on economic stability, investment and planning reform.
It will pledge tough new spending rules, cap corporation tax at 25 per cent, and set out a new industrial strategy in a bid to give businesses the confidence to invest.
Labour will also launch a national wealth fund and open Great British Energy, as part of a plan for clean power which they estimate will create 650,000 new jobs in growing industries.
Cutting planning red tape, building 1.5m homes and establishing a 10-year infrastructure strategy are also key to generating growth, Starmer will say, while devolving power to mayors will enable regional growth across transport, skills, housing, planning and jobs.
The manifesto will also contain commitments on Labour’s plans for workers’ rights reform and childcare, as well as committing to workforce plans around immigration, skills and data.
Starmer will say: “Some people say how you grow the economy is not a central question – it’s not about how you create wealth, but how you tax it, spend it, how you slice the cake.”
He is expected to describe the party’s 2024 manifesto as “a total rejection of that argument”, saying: “If we could grow the economy at anything like the level the last Labour government did, that’s an extra £70bn worth of investment for our public services.”
It comes after Prime Minister Rishi Sunak and Liberal Democrat leader Sir Ed Davey launched their parties’ manifestos earlier this week, with the Conservatives offering a range of tax cuts and promises to reduce migration, build homes and reform the welfare system.
While the Lib Dems’ offering centred around increasing taxes on big banks and high earners, in a bid to fund the NHS and social care, and a closer relationship with the European Union.
Chancellor Jeremy Hunt has urged Labour to match what he called a new family business tax guarantee, ruling out tax rises on enterprise and jobs, including capital gains tax and employer National Insurance.
He said if the Tories are re-elected they would pledge for the whole of the next parliament not to increase employer National Insurance, capital gains tax, or corporation tax, and retain key tax incentives to encourage small business growth, such as the enterprise investment scheme and venture capital trusts.
Hunt said: “Ultimately it’s not businesses that pay taxes, it’s people. That’s why we’re guaranteeing not to raise taxes on businesses and jobs in the next parliament, and I’m challenging Labour to rule these tax hikes out too… so if you think Labour will win, start saving.”