Rachel Reeves is repeating Boris Johnson’s economic policy – but her guest endorsement was the real surprise
Get Britain building again. Get the country growing again. Clamping down on waste. Making Britons better off…
The funny thing about the messages coming from Rachel Reeves in her party conference speech today is that she is standing four-square in territory dominated by the Conservative Party only a few years ago.
She wants to unblock the planning system, making it easier for energy companies to build wind turbines, solar panels and gigafactories.
She also wants to try to encourage more housebuilding.
Even as she does so, she’s promising to keep an “iron grip” on the public finances and to introduce measures to prevent big projects from overrunning their budgets.
Back when Boris Johnson was the prime minister, this was, almost letter for letter, Conservative policy.
Today’s conference speech underlines how much the Labour Party has shifted since the era of Jeremy Corbyn.
There were some bits and pieces of policy there: the undertaking to reform the planning system, the creation of a kind of “star chamber” to scrutinise spending on big infrastructure projects, not to mention an attempt to recoup some of the spending on consultants and corruption during COVID-19.
Tramlines of next election coming into focus
But as is invariably the case with conference speeches, this was more about messaging than policy.
And the message the Labour Party wanted to get across was that people should be able to trust Rachel Reeves with their money.
However, just as interesting as what the speech told you about the Labour Party is what it told you about the Conservatives.
The party which once occupied this very same territory under Boris Johnson has now dramatically changed its economic messaging.
Last week at the Conservative conference in Manchester, most of the emphasis from Jeremy Hunt was about retrenching government spending.
It wasn’t just the cancellation of HS2’s northern leg; the biggest new announcement in the chancellor’s speech was a freeze in civil service recruitment.
It was austerity all over again.
So the broad tramlines of the next election seem to be coming into focus: the Conservatives pledging a smaller state (and, one presumes, lower taxes). And Labour promising more borrowing to invest in infrastructure.
In a sense, politics is reverting to pre-Brexit norms.
Shadow chancellor Rachel Reeves making her speech
Special guest was more surprising than speech itself
But many questions remain.
For all the energy of the Reeves speech today, no one is entirely sure how her proposals will work.
How will she succeed in reforming the planning system when every previous chancellor has failed?
How will Great British Energy, her new scheme to revamp the National Grid, actually work?
What’s her plan to deal with the cost of living, save for endorsing the Bank of England?
Read more
Hunt v Truss: Tories divided on how economies work
The three main points from Hunt’s conference speech
Speaking of which, arguably the biggest surprise of the speech actually happened after it was over.
On the big screen here at Liverpool, a video message was played from a “special guest”.
That guest was none other than the former Bank of England governor, Mark Carney, who gave an endorsement.
“Rachel Reeves is a serious economist. She began her career at the Bank of England and she understands the big picture,” he said in the video.
He added: “But crucially she also understands the economics of work, of place and family. It’s beyond time to put her ideas and energy into action.”
Mark Carney. File pic: AP
Much of the chatter before this conference has been about the increasing enthusiasm of those in the business and professional communities about the prospect of a Labour government.
The halls are thick with lobbyists who believe Reeves will indeed soon be the chancellor – the first female to take up the post in history.
Carney’s endorsement double-underlined that sense.
Elon Musk could be on track for a $1trn (£761bn) pay package – if Tesla meets a series of extremely ambitious targets over the next 10 years.
The world’s richest man has the potential to become a trillionaire after the controversial plans were approved by 75% of the company’s shareholders.
It would be the largest corporate pay package in history.
However, it won’t be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade – more than double the number churned out over the past 12 years.
He will be tasked with dramatically increasing the company’s valuation and operating profits.
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Musk closer to trillionaire status
Another requirement is for Tesla to roll out one million AI-powered robots – despite the fact it hasn’t released a single one so far.
Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla.
As each step is successfully completed, he will receive more company shares and his ownership stake will rise – potentially from 13% now to almost 29%.
And even if Musk falls short of some of these targets, he could end up earning a lot of money.
Figures from Forbes magazine suggest the 54-year-old already has a net worth of $493bn (£375bn) – and while that means he has more money than anyone else on the planet, he isn’t the richest person in history… yet.
That title belongs to John D Rockefeller, the railroad titan who had a wealth of $630bn (£480bn) back in 1913 – when adjusted for inflation.
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The X Effect
Why?
Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI).
It’s seeking a visionary leader to spearhead this move. And a lot of Tesla’s market value is tied up in this ambition.
Tesla’s board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality.
Some believe there’s no one else like Musk.
More shares in the company are “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history”, said financial services firm Wedbush.
“We believe this was the smart move by the board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk … and with the AI revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and centre.”
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Opposition
Not everyone is in favour of the pay package.
Major investor advice firm Institutional Shareholder Services (ISS) warned the 10-year pay agreement reduces the board’s ability “to meaningfully adjust future pay levels in the event of unforeseen events or changes in either the performance or strategic focus of the company over the next decade”.
In a note, ISS said: “The high value of each tranche could also potentially undermine Musk’s desire to achieve all goals and create significant value for shareholders”, and that the goals “lack precision”.
Musk has described ISS and another major adviser, Glass Lewis, as “corporate terrorists”.
There was speculation he would walk away from the business if the package was not agreed on.
ITV has revealed talks with Sky, the owner of Sky News, over the possible sale of its media and entertainment (M&E) division in a deal worth £1.6bn.
Sky News understands the approach centres on the potential creation of a UK-focused streaming giant.
The division takes in ITV’s current broadcast operations and channels, which are largely dependent on advertising revenue.
The talks do not include the company’s studios arm, which makes shows such as I’m A Celebrity… Get Me Out Of Here!
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“There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place”, a statement by ITV to the London Stock Exchange said.
“A further announcement will be made in due course if appropriate”, it concluded.
ITV shares jumped by 15% in early trading in response to the statement.
The potential deal involves ITV’s channels but not the company’s production arm. Pic: PA
Sky, which is wholly owned by the US media and entertainment firm Comcast, declined to comment.
ITV released its statement after news of the discussions were first revealed by Bloomberg News.
Just hours earlier, the company’s latest financial results showed it was moving to save millions of pounds due to an advertising slowdown.
ITV reported delays to some programmes over the coming months to save costs as a result.
Sky is owned by the US company Comcast
It predicted a 9% decline in ad revenues across 2025, with the most recent trends being blamed on advertisers pulling back on spending in anticipation of the chancellor’s budget later this month.
It is understood that a possible deal between Sky and ITV would seek to create a larger, more attractive proposition for advertisers in the UK streaming sphere through a focus on UK audiences.
ITV has long been the subject of takeover speculation.
The latest came from the Reuters news agency earlier this year when it reported early-stage talks with Abu Dhabi-backed group RedBird IMI about a possible merger of their respective production businesses.
French media group Banijay was also reported to have held discussions about a possible offer for ITV’s studio business or a full takeover.
Elon Musk could be on track for a $1trn (£761bn) pay package – if Tesla meets a series of extremely ambitious targets over the next 10 years.
The world’s richest man has the potential to become a trillionaire after the controversial plans were approved by shareholders.
However, it won’t be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade – more than double the number churned out over the past 12 years.
He will be tasked with dramatically increasing the company’s valuation and operating profits.
Another requirement is for Tesla to roll out one million AI-powered robots – despite the fact it hasn’t released a single one so far.
Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla.
As each step is successfully completed, he will receive more company shares and his ownership stake will rise – potentially from 13% now to almost 29%.
And even if Musk falls short of some of these targets, he could end up earning a lot of money.
Figures from Forbes magazine suggest the 54-year-old already has a net worth of $493bn (£375bn) – and while that means he has more money than anyone else on the planet, he isn’t the richest person in history… yet.
That title belongs to John D. Rockefeller, the railroad titan who had wealth of $630bn (£480bn) back in 1913 – when adjusted for inflation.
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Could Elon Musk become the world’s first trillionaire?
Why?
Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI).
It’s seeking a visionary leader to spearhead this move. And a lot of Tesla’s market value is tied up in this ambition.
Tesla’s board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality.
Some believe there’s no one else like Musk.
More shares in the company are “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history”, said financial services firm Wedbush.
“We believe this was the smart move by the board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk … and with the AI revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and centre.”
“Getting Musk’s pay package approved will be a big step towards advancing Tesla’s future goals,” Wedbush analysts wrote.
Opposition
Not everyone is in favour of the pay package.
Major investor advice firm Institutional Shareholder Services (ISS) warned the 10-year pay agreement reduces the board’s ability “to meaningfully adjust future pay levels in the event of unforeseen events or changes in either the performance or strategic focus of the company over the next decade”.
In a note, ISS said: “The high value of each tranche could also potentially undermine Musk’s desire to achieve all goals and create significant value for shareholders”, and that the goals “lack precision”.
Mr Musk has described ISS and another major adviser, Glass Lewis, as “corporate terrorists”.
There was speculation he would walk away from the business if the package was not agreed on.
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