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.
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.
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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.
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Eric Schmidt speaks with Sir Keir Starmer at summit in Central London
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.
Image: Chancellor Rachel Reeves. Pic: PA
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.
Flawed data has been used repeatedly to dismiss claims about “Asian grooming gangs”, Baroness Louise Casey has said in a new report, as she called for a new national inquiry.
The government has accepted her recommendations to introduce compulsory collection of ethnicity and nationality data for all suspects in grooming cases, and for a review of police records to launch new criminal investigations into historical child sexual exploitation cases.
Image: Baroness Louise Casey carried out the review. Pic: PA
The crossbench peer has produced an audit of sexual abuse carried out by grooming gangs in England and Wales, after she was asked by the prime minister to review new and existing data, including the ethnicity and demographics of these gangs.
In her report, she has warned authorities that children need to be seen “as children” and called for a tightening of the laws around the age of consent so that any penetrative sexual activity with a child under 16 is classified as rape. This is “to reduce uncertainty which adults can exploit to avoid or reduce the punishments that should be imposed for their crimes”, she added.
Baroness Casey said: “Despite the age of consent being 16, we have found too many examples of child sexual exploitation criminal cases being dropped or downgraded from rape to lesser charges where a 13 to 15-year-old had been ‘in love with’ or ‘had consented to’ sex with the perpetrator.”
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Grooming gangs victim speaks out
The peer has called for a nationwide probe into the exploitation of children by gangs of men.
She has not recommended another over-arching inquiry of the kind conducted by Professor Alexis Jay, and suggests the national probe should be time-limited.
The national inquiry will direct local investigations and hold institutions to account for past failures.
Home Secretary Yvette Cooper said the inquiry’s “purpose is to challenge what the audit describes as continued denial, resistance and legal wrangling among local agencies”.
On the issue of ethnicity, Baroness Casey said police data was not sufficient to draw conclusions as it had been “shied away from”, and is still not recorded for two-thirds of perpetrators.
‘Flawed data’
However, having examined local data in three police force areas, she found “disproportionate numbers of men from Asian ethnic backgrounds amongst suspects for group-based child sexual exploitation, as well as in the significant number of perpetrators of Asian ethnicity identified in local reviews and high-profile child sexual exploitation prosecutions across the country, to at least warrant further examination”.
She added: “Despite reviews, reports and inquiries raising questions about men from Asian or Pakistani backgrounds grooming and sexually exploiting young white girls, the system has consistently failed to fully acknowledge this or collect accurate data so it can be examined effectively.
“Instead, flawed data is used repeatedly to dismiss claims about ‘Asian grooming gangs’ as sensationalised, biased or untrue.
“This does a disservice to victims and indeed all law-abiding people in Asian communities and plays into the hands of those who want to exploit it to sow division.”
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3:07
From January: Grooming gangs: What happened?
The baroness hit out at the failure of policing data and intelligence for having multiple systems which do not communicate with each other.
She also criticised “an ambivalent attitude to adolescent girls both in society and in the culture of many organisations”, too often judging them as adults.
‘Deep-rooted failure’
Responding to Baroness Casey’s review, Ms Yvette Cooper told the House of Commons: “The findings of her audit are damning.
“At its heart, she identifies a deep-rooted failure to treat children as children. A continued failure to protect children and teenage girls from rape, from exploitation, and serious violence.
She added: “Baroness Casey found ‘blindness, ignorance, prejudice, defensiveness and even good but misdirected intentions’ all played a part in this collective failure.”
Ms Cooper said she will take immediate action on all 12 recommendations from the report, adding: “We cannot afford more wasted years repeating the same mistakes or shouting at each other across this House rather than delivering real change.”
Image: Home Secretary Yvette Cooper responded to the report. Pic: PA
Conservative leader Kemi Badenoch said: “After months of pressure, the prime minister has finally accepted our calls for a full statutory national inquiry into the grooming gangs.
“We must remember that this is not a victory for politicians, especially the ones like the home secretary, who had to be dragged to this position, or the prime minister. This is a victory for the survivors who have been calling for this for years.”
Ms Badenoch added: “The prime minister’s handling of this scandal is an extraordinary failure of leadership. His judgement has once again been found wanting.
“Since he became prime minister, he and the home secretary dismissed calls for an inquiry because they did not want to cause a stir.
“They accused those of us demanding justice for the victims of this scandal as, and I quote, ‘jumping on a far right bandwagon’, a claim the prime minister’s official spokesman restated this weekend – shameful.”
The government has promised new laws to protect children and support victims so they “stop being blamed for the crimes committed against them”.
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Whitehall officials tried to convince Michael Gove to go to court to cover up the grooming scandal in 2011, Sky News can reveal.
Dominic Cummings, who was working for Lord Gove at the time, has told Sky News that officials in the Department for Education (DfE) wanted to help efforts by Rotherham Council to stop a national newspaper from exposing the scandal.
In an interview with Sky News, Mr Cummings said that officials wanted a “total cover-up”.
The revelation shines a light on the institutional reluctance of some key officials in central government to publicly highlight the grooming gang scandal.
In 2011, Rotherham Council approached the Department for Education asking for help following inquiries by The Times. The paper’s then chief reporter, the late Andrew Norfolk, was asking about sexual abuse and trafficking of children in Rotherham.
The council went to Lord Gove’s Department for Education for help. Officials considered the request and then recommended to Lord Gove’s office that the minister back a judicial review which might, if successful, stop The Times publishing the story.
Lord Gove rejected the request on the advice of Mr Cummings. Sources have independently confirmed Mr Cummings’ account.
Image: Education Secretary Michael Gove in 2011. Pic: PA
Mr Cummings told Sky News: “Officials came to me in the Department of Education and said: ‘There’s this Times journalist who wants to write the story about these gangs. The local authority wants to judicially review it and stop The Times publishing the story’.
“So I went to Michael Gove and said: ‘This council is trying to actually stop this and they’re going to use judicial review. You should tell the council that far from siding with the council to stop The Times you will write to the judge and hand over a whole bunch of documents and actually blow up the council’s JR (judicial review).’
“Some officials wanted a total cover-up and were on the side of the council…
“They wanted to help the local council do the cover-up and stop The Times’ reporting, but other officials, including in the DfE private office, said this is completely outrageous and we should blow it up. Gove did, the judicial review got blown up, Norfolk stories ran.”
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Grooming gangs victim speaks out
The judicial review wanted by officials would have asked a judge to decide about the lawfulness of The Times’ publication plans and the consequences that would flow from this information entering the public domain.
A second source told Sky News that the advice from officials was to side with Rotherham Council and its attempts to stop publication of details it did not want in the public domain.
One of the motivations cited for stopping publication would be to prevent the identities of abused children entering the public domain.
There was also a fear that publication could set back the existing attempts to halt the scandal, although incidents of abuse continued for many years after these cases.
Sources suggested that there is also a natural risk aversion amongst officials to publicity of this sort.
Mr Cummings, who ran the Vote Leave Brexit campaign and was Boris Johnson’s right-hand man in Downing Street, has long pushed for a national inquiry into grooming gangs to expose failures at the heart of government.
He said the inquiry, announced today, “will be a total s**tshow for Whitehall because it will reveal how much Whitehall worked to try and cover up the whole thing.”
He also described Mr Johnson, with whom he has a long-standing animus, as a “moron’ for saying that money spent on inquiries into historic child sexual abuse had been “spaffed up the wall”.
Asked by Sky News political correspondent Liz Bates why he had not pushed for a public inquiry himself when he worked in Number 10 in 2019-20, Mr Cummings said Brexit and then COVID had taken precedence.
“There are a million things that I wanted to do but in 2019 we were dealing with the constitutional crisis,” he said.
The Department for Education and Rotherham Council have been approached for comment.