Sir Keir Starmer will promise to “fix unprecedented stagnation” in the growth of productivity in the UK, as he unveils Labour’s “plan for business”.
The party leader and his shadow chancellor, Rachel Reeves, will host hundreds of business leaders and investors at a central London event on Thursday, as the pair seek to win over the corporate community ahead of the next election.
Sir Keir will claim the attendance of so many c-level executives at the gathering shows the “depth of the changes we’ve made to transform the Labour Party’s relationship with business”, saying it was something he took “immense pride in”.
And he will attack the Conservatives for their record in power over the past 14 years.
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The Labour leader is expected to say: “It’s not just the permanent cycle of crisis, there is something much more fundamentally broken in the way this country creates wealth.
“Fifteen years of lost wage growth and an economy with weak foundations that, even in the calmer moments, can’t provide the security working people need to look forward doesn’t just hold back our potential but also rips up the contract and values that keep a country together.
“It undermines the sense that if you work hard and play by the rules, you will have a chance in Britain and the future will be better for your children.”
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Sophy Ridge explains how the last Labour Party conference was packed with businesses
Sir Keir will promise to “deliver growth and prosperity across every corner of the nation” with Labour’s five-point plan for business if the party gets into power at the next election.
Although little detail has been provided yet, the headlines of each step have been outlined, namely:
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• “To get Britain building again after 14 years of stagnation”;
• “Plans for skills to drive growth”;
• “The need to partner with business to make work pay for working people”;
• “Backing British business”;
• “Creating the stable economic conditions required for delivering growth”.
The party said this “growth mission” will line up with Labour’s existing pledge to achieve the highest sustained growth in the G7.
Sir Keir will tell business leaders: “Today we launch this new plan, this new purpose, this new partnership with five priorities to unite behind.
“Five steps we can take together to begin our walk towards a Britain with its future back.”
The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.
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