Shadow Chancellor Rachel Reeves has declared that Britain is emerging as a “safe haven” for international investment, contrasting the country’s stability with the political turbulence seen in France and neighbouring European nations.
In a bid to reassure multinational companies, Reeves announced that the Labour Party would host an international investment summit within 100 days of winning office, should they triumph in the upcoming election. The goal is to present the UK as a more stable and predictable environment compared to its European counterparts.
“Over the last few years, it’s been Britain that has looked like an unstable, unsafe place to invest,” Reeves stated. “I want investors to look at Britain and say it is a safe haven in a turbulent world, a place where I can invest with confidence in a world where perhaps other countries are tilting to more populist politics.”
This week has seen traders offload the euro and French and Italian bonds due to the anticipated fiscal loosening in France, where the far-right National Rally is poised to secure the most seats in parliamentary elections. This political shift underscores the stability Reeves aims to highlight for the UK.
A Labour victory in the forthcoming election would position the party as the most successful centre-left movement in Europe, especially as social democrats in large economies like Germany and Spain have recently lost ground in the European parliament elections.
“I want Britain to be seen by investors around the world as a safe place to put your money, a place that you can invest with confidence, knowing that government and business will work in partnership to really exploit the big opportunities we have as a country,” Reeves added.
Reeves’ comments coincided with tacit support from Sir Charlie Mayfield, former chairman of The John Lewis Partnership. Writing in The Times, Mayfield praised the party’s focus on collaboration with business for renewed growth and highlighted the determined leadership promised by Reeves and Sir Keir Starmer.
Reeves assured the business community that Labour is “unambiguously, unapologetically, a party of wealth creation” and that there is “nothing to worry about” regarding the party’s plans to enhance workers’ rights. She emphasised that Labour would not ban flexible working or zero-hour contracts and would consult businesses on any new plans to ensure flexibility and security in the workforce.
If she assumes the role of Britain’s first female chancellor, Reeves aims to achieve an annual economic growth rate of 2% of GDP, a significant increase from the 0.7% projected for this year and the modest average of just over 1% in the past decade.
“That’s not a growth [target] that’s out of this world. That’s just having the average growth of other OECD economies and I want us back on track with strong and sustained growth. That in the end is the only way to both improve living standards and have the money that’s needed for public services,” Reeves concluded.
Read more:
Rachel Reeves Courts Business with Stability Pledge for Britain