Annual Conference 2021: the Leader of the Opposition on Labour’s relationship with business

Britain is not as dynamic, competitive or profitable as it needs to be – and the biggest sticking point is productivity. That was the verdict of Labour leader Sir Keir Starmer, who spoke live to a CBI audience in the Midlands.

“Even before the pandemic the UK went through the worst decade of productivity growth since the industrial revolution.”

So how do we put that right?

We need a better relationship between business and politics

“The business community and the political world need to work together. We both have a job to do. That job is to remake Britain. And that means remaking Britain's economy, so it's fit for purpose and fit for the future,” said Starmer.

To do that, he spoke of a new contract between business and Labour.

On Labour’s side, he committed to getting the economy to grow, getting to grips with the problem of productivity and giving business a generation of young people ready to work.

His plan includes a policy for start-ups, the scrapping of business rates, a sector-by-sector plan for green growth and a new skills council. “The battle for talent will be one of the defining issues of the 21st century,” he said.

On the business side of the contract, he urged firms “to invest for the long term, rather than the short term; to contribute as we strive to net zero; to contribute to your local communities; and to support your workforce with fair pay and flexible working.”

We need increased business investment, better capital stock and better infrastructure

That way cities outside the Southeast stand a chance of becoming economic powerhouses, said Sir Keir.

“It was devastating to see the government rip up its promises in relation to HS2 and the Northern Powerhouse Rail. These are not just train lines. They're lifelines for businesses and commuters. And it's not just a betrayal of the North. It's a betrayal of the economic potential of those regions,” he added.

We need a plan to make Brexit work

The Labour leader wants to work with business to carry out a “transparent and honest analysis of the holes” in the current deal – and to fill them fast. And he pledged to find agreements in line with recent CBI asks. These included:

• A new veterinary agreement for trade in agriculture products
• Mutual recognition of conformity assessments across all sectors to eliminate the need for two certification processes to sell goods in both the UK and the EU
• Regulatory equivalence for financial services and mutual recognition of professional qualifications
• Maintaining the UK’s data adequacy status
• A better long-term deal for UK hauliers to ease the supply chain problems

“We all have a duty to make Brexit work,” he added.

We need to get above the political fray

In a Q&A after his speech, Sir Keir said that in the past Labour have been seen as tolerating business. It now wants the relationship to be about celebrating good business and its power to tackle problems.

“I believe in business as a force for good – and in government creating an environment for business to flourish,” he said.