Starmer enjoys reset moment after difficult 100 days – but big test lies ahead

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3 months ago

October 14, 2024

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It was billed as a “big moment” for the Starmer administration and, arriving at Labour’s International Investment Summit, it was clear how seriously the government was taking it

The venue was the spectacular 15th century Guildhall in the heart of the City of London, where 200 leading executives gathered with the UK’s prime minister, cabinet, first ministers and mayors to talk about investment in the UK.

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Adjoa Andoh, who plays Lady Danbury in Netflix’s wildly successful Bridgerton, was the day’s host, with the one-day summit to be capped off by a glittering reception in St Paul’s Cathedral hosted by King Charles, a three Michelin star meal and a performance by Sir Elton John.

Sir Keir Starmer depicted this summit as a key moment in reviving Britain’s global standing in the world as he promised investors he would “do everything in power to galvanise growth”.

He promised investors an end to “the culture of chop and change” with “mission-led mindset that thinks in years”, a new industrial strategy, and pledged to “rip up the bureaucracy that blocks investment” to make sure Britain’s regulators are geared for growth.

“We will make sure that every regulator in this country… takes growth as seriously as this room does,” he said.

After a difficult first 100 days beset by infighting in the prime minister’s Downing Street and rows over freebies, the Starmer team wanted to make day 101 of this Labour government a moment to reset and get back to the business of the the PM’s first mission – economic growth.

And while Sir Keir didn’t make any specific reference to his first 100 days in his speech to investors, there was a nod to the frustration I’m told he had been feeling in recent weeks, as he sought to inject some momentum into his new government.

He said: “We know – just as every leader knows, that those early weeks and months are precious,

“And no matter how many people advise you to ignore it, you must run towards the fire to put it out, not let it spread further. So we will fix our public services. We will stabilise our economy and we will do it quickly.”

Ripping up bureaucracy to create “shock and awe” investment.

It is not necessarily what you’d expect to hear from a government. Eric Schmidt, the former chief executive of Google, who joined Keir Starmer in conversation after the PM’s speech, told the audience of business executives he was “shocked when I heard Labour was in favour of growth,” before going on to say there was “plenty of money that’s going to come into the country” if the government could tackle regulation.

But he also warned the prime minister he would not be able to achieve his goal of clean energy in 2030 without dealing with regulation.

No 10 insiders tell me that the task in the coming months is to “rewire” each regulator – digital, water, energy, competition – for the next decade, with one figure telling me “cutting red tape is about making sure the UK regime doesn’t look too severe, especially relative to our size and influence on global markets”.

One Whitehall official offers up an example of the Competition and Markets Authority which investigated a tie-up between Amazon and an AI company, Anthropic, despite the latter having no business in the UK, which only served to make the UK look anti-tech (the investigation has since been dropped).

For Treasury insiders, the £60bn of investment into new shovel-ready projects announced alongside the investment summit is a significant boon after a difficult few weeks.

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“We’ve beaten expectations,” says one government figure, pointedly remarking that the Conservative government’s investment summit last year raised £28bn.

“Politics is like a see-saw. When you’re down, you can’t do anything right, but when you’re up, you can’t do anything wrong. This was also the conception. To have a summit in the first 100 days of the government where we were banging the drum beat for Britain.”

There will be questions over how Labour can square off the growth plan with Sir Keir’s raft of new workers’ rights – something that the PM tackled head-on in this speech when he told the audience that “workers with more security in work, higher wages, is a better growth model for this country”.

There are also questions about whether the big growth sale made to 200 chief executives, representing an astonishing £40trn of assets, will jar when the budget comes around on 30 October.

Chancellor Rachel Reeves has insisted it will be a growth budget, but there are growing expectations Labour will raise billions of pounds in business taxes by including employer pension contributions in the national insurance system.

The chancellor could raise £18bn a year by the end of 2030 if she levies a flat 13.8% rate on pension contributions, according to research by the Resolution Foundation thinktank.

One Treasury figure said it wasn’t true that investors were “trapped in a cycle of only caring about a budget. They want a government with a sense of stability and purpose. That’s about tax and spend, but it’s also: regulations and barriers matter, planning reform matters, stable government and a big majority, which is what Labour has, matters.”

This Investment summit, long in the making, has taken on new significance for a Starmer government in search of a fresh start after a difficult first 100 days.

Ministers will arrive at St Paul’s this evening feeling that they, at last, have something to celebrate.

The next big test will be the budget later this month, but the much bigger task is to turn the promises made on the stage into a framework that unlocks billions more than the down-payment from business promised today.

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US Bitcoin reserve odds skyrocket on betting markets

Published

2 hours ago

January 17, 2025

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US Bitcoin reserve odds skyrocket on betting markets

Kalshi bettors put the odds of Trump creating a Bitcoin reserve in 2026 at roughly 70%.

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Sir Keir Starmer says Auschwitz visit ‘utterly harrowing’ as he vows to fight ‘poison of antisemitism’

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2 hours ago

January 17, 2025

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Sir Keir Starmer says Auschwitz visit 'utterly harrowing' as he vows to fight 'poison of antisemitism'

Sir Keir Starmer has called his visit to Auschwitz “utterly harrowing” and said he was determined to fight the “poison of antisemitism”.

The prime minister visited the former Nazi concentration camp where he laid a wreath ahead of the 80th anniversary of its liberation, during a trip to Poland to meet its political leaders.

After he and his wife Victoria, who is Jewish, visited the site, Sir Keir said: “Nothing could prepare me for the sheer horror of what I have seen in this place. It is utterly harrowing. The mounds of hair, the shoes, the suitcases, the names and details, everything that was so meticulously kept, except for human life.

“As I stood by the train tracks at Birkenau, looking across that cold, vast expanse, I felt a sickness, an air of desolation, as I tried to comprehend the enormity of this barbarous, planned, industrialised murder: a million people killed here for one reason, simply because they were Jewish.”

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Historians estimate about 1.1 million people, mostly Jews, perished in Auschwitz over less than five years as part of the Nazi’s extermination plan. The camp was liberated by the Soviet army on 27 January 1945.

Sir Keir, who was on his first trip there, said it was Lady Starmer’s second visit but it was “no less harrowing than the first time she stepped through that gate and witnessed the depravity of what happened here”.

He added that their visit truly showed him how “this was not the evil deeds of a few bad individuals, it took a collective endeavour by thousands of ordinary people… in the hatred of difference”.

“The lessons of this darkest of crimes are the ultimate warning to humanity of where prejudice can lead,” he said.

The prime minister warned of the rising threat of antisemitism in recent years, including in the UK.

“The truth that I have seen here today will stay with me for the rest of my life,” he said.

“So too, will my determination to defend that truth, to fight the poison of antisemitism and hatred in all its forms, and to do everything I can to make ‘never again’ mean what it says, and what it must truly mean: never again.”

Sir Keir travelled to Poland from Kyiv after meeting President Volodymyr Zelenskyy there in his first trip to Ukraine since becoming prime minister.

He told Sky News’ political editor Beth Rigby, in Kyiv, the UK will play its “full part” in peacekeeping in Ukraine, including sending troops.

However, former senior military leaders have warned this may not be possible due to the army being at its smallest size for 200 years.

In Poland, he is expected to discuss the new UK-Poland treaty with his counterpart Donald Tusk, which will support both countries working together to protect Europe from Russian aggression and work together to tackle people smuggling gangs.

Karen Pollock, chief executive of the Holocaust Educational Trust, said the charity was “grateful to Sir Keir for leading the way in ensuring that the horrors of the past are always remembered”.

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No phones, a drone threat and strict rules: Beth Rigby on what it’s like to join the prime minister in Ukraine

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2 hours ago

January 17, 2025

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No phones, a drone threat and strict rules: Beth Rigby on what it's like to join the prime minister in Ukraine

No phones or other devices, strict reporting rules, bombed-out buildings, and a drone threat – Beth Rigby shares what it’s like to join the prime minister Sir Keir Starmer in Ukraine.

Sky News’s political editor said “the whole experience was absolutely fascinating” on the Electoral Dysfunction podcast, but added the nature of Sir Keir‘s visit to the war-ravaged country meant the government “had to keep it very tight”.

“If it became known more widely than a very, very tight group of people that he was going to make the trip, the trip gets pulled for security reasons.”

Reporting from Ukraine, Sky News joined the prime minister as he signed a 100-year “friendship” deal to guarantee Britain’s support for Kyiv.

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Sky cameras filmed Sir Keir laying a wreath with Ukrainian President Volodymyr Zelenskyy, after a Russian drone was shot down over the presidential palace while they held meetings.

In an interview, the prime minister told Ms Rigby that the UK would play its “full part” in peacekeeping in Ukraine and that the drone threat was “a reminder of what Ukraine is facing every day”.

The prime minister’s first stop while in Ukraine was at a hospital, where he and reporters saw a major burns unit up close.

Ms Rigby said: “There was an ICU you could go in… There were two gentlemen, two guys, and they were having physio treatment, and they were very happy to be filmed, and they… talked to the prime minister about their experiences and… their skin was just covered in burns, scars.

“After, I did the pool clip with him [Sir Keir], and I was like, ‘how was it?’ He just said, ‘it’s really hard to see this.’

“It really hammers home what it is, and I think he kept referring to the hospital throughout every visit of the day.”

Speaking to Labour peer Harriet Harman and former Scottish Conservatives leader Baroness Davidson on the podcast, Ms Rigby said that in order to make the trip, “we had to give in all our devices” as “for security reasons, you can’t take your devices into Ukraine”.

While riding trains across the country, she said “you get some basic food, and you get a little bunk”. Strict reporting rules also apply, so Sky could not report on Sir Keir’s whereabouts “until after he’s left”.

“We went to a hospital, and I can’t tell you what hospital it was, but we weren’t allowed to report that until the prime minister left the location,” she said.

“So, it just gives you a sense of the amount of security around these visits.”

During a visit to a drone manufacturer, Ms Rigby added that Ukrainians “brought the drones from where they’re actually manufactured” but did not allow cameras into the site.

“They placed them in a hall, which they made to look like an underground car park, right? You weren’t allowed to film outside. You couldn’t film the steps,” she said.

“You couldn’t film anything that might allow anyone to understand where the location might have been… This is the extent to which they try and disguise the movement and what they’re doing.”

Ms Rigby then said she and others were taken on “a little tour where 100 yards or so down from where Zelenskyy’s offices in the centre of Ukraine is a bombed-out car and a building that has been bombed, and the top floor is destroyed”.

“That happened on 1 January,” she said. “And the reason that they are showing him that is to reiterate to all of us that… Russia is not completely destroying the centre of Kyiv, but the threat is ever-present.”

The prime minister is now in Poland, where he will kickstart talks on a new security pact to protect the UK’s national security.

During his visit, Sir Keir will also meet Polish businesses, including the firm InPost which has announced it will invest a further £600m into the UK in the next five years to grow its operations.