UK’s Labour pitches for power with ‘wealth creation’ pledge

MANCHESTER: Britain’s Labour party launched a “manifesto for wealth creation” Thursday, pledging to get the economy firing again if it wins power in next month’s election after 14 years in opposition.

Labour has consistently led Rishi Sunak’s Conservatives by around 20 points for nearly two years, suggesting its leader Keir Starmer will become the next prime minister.

“Wealth creation is our number one priority, economic growth is our core business,” said Starmer, 61, unveiling his centre-left party’s blueprint for government before the July 4 vote.

The manifesto launch came two days after the Tories promised voters more tax cuts, in a campaign where the affordability of the main parties’ spending plans have come under close scrutiny.

Despite Labour’s hefty poll lead, Starmer is fighting to overcome persistent Tory claims that his party will recklessly spend public finances and increase personal taxes.

Starmer has ruled out increasing the VAT sales tax, income tax rates and National Insurance — which pays for state healthcare, pensions and unemployment.

He says Labour will instead focus on spurring economic growth if it wins.

He pledged to restore economic “stability” after the turbulence of recent years that saw inflation hit 11.1 percent in October 2022 — its highest in 40 years.

Starmer and likely finance minister Rachel Reeves look set to have little room for manoeuvre, however, with the economy stagnant in April after emerging from recession in the first quarter.

Economists say the incoming government could get some momentum from expected falls in interest rates and inflation by the end of the year, however.

“We don’t have a magic wand but what we do have, what this manifesto represents, is a credible long-term plan,” said Starmer in Manchester, northwest England. He pledged to end Tory “chaos” and “rebuild” Britain.

Many of the polices in Labour’s manifesto have been drip-fed to journalists for months, and Thursday’s launch included no surprises.

The booklet includes a new National Wealth Fund to invest in industries and a publicly owned clean energy company.

Labour also promises to employ 6,500 new teachers and provide 40,000 new hospital appointments a week.

It plans to cap corporation tax at 25 percent but intends to raise billions of pounds of additional revenues by cracking down on non-domiciled tax statuses while raising levies on private schools and oil and gas profits.