Sir Keir Starmer vows to ‘rip out the red tape’ that is blocking investment in Britain – but critics warn it’s LABOUR’S bureaucracy that’s burdening UK businesses _ Hieuuk
Sir Keir Starmer will today pledge to ‘rip out’ the bureaucracy that blocks investment in Britain as he hosts a major business conference in London.
The Prime Minister will promise to axe the red tape holding back the development of homes and infrastructure, saying he will do ‘everything in my power to galvanise growth’.
But at the same time, critics warned that the Government is burdening business with new workers’ rights regulations which could stop bosses hiring new staff.
Sir Keir will host leading investors and CEOs at the inaugural International Investment Summit, where ministers hope to unveil deals worth billions for AI, life sciences and infrastructure.
Keir Starmer will promise to axe the red tape holding back the development of homes and infrastructure, saying he will do ‘everything in my power to galvanise growth’
Sir Keir will host leading investors and CEOs at the inaugural International Investment Summit, where ministers hope to unveil deals worth billions for AI, life sciences and infrastructure
The summit was nearly overshadowed by a row over criticism of P&O Ferries that jeopardised a £1billion investment by its Dubai-based owner DP World.
But the spat was smoothed over at the weekend and the company has said it will still attend the conference.
The Government is eager to show it is making progress on its mission to deliver economic growth after marking 100 days in office and ahead of the Chancellor’s first Budget on October 30.
Rachel Reeves has warned of ‘tough decisions’ ahead, claiming the Government needs to plug a £22billion ‘black hole’ in the public finances left by the Tories.
Ministers believe international investment will help with its goals to create jobs, improve living standards and make communities and families across the country better off.
The Government will ask the Competition and Markets Authority to prioritise growth, investment and innovation and will review the focus of other major regulators to ‘curb red tape’ and put the UK ‘at the front of the queue’ for opportunities.
Sir Keir will pitch Britain as a stable bet for investors, using his speech at the summit to vow to ‘do everything in my power to galvanise growth’.
The summit was nearly interrupted by a disagreement over criticism of P&O Ferries that jeopardised a £1billion investment by its Dubai-based owner DP World
He is expected to say: ‘We’ve got to look at regulation where it is needlessly holding back the investment to take our country forward.
‘Where it is stopping us building the homes, the data centres, warehouses, grid connectors, roads, trainlines, you name it then mark my words – we will get rid of it.
‘We will rip out the bureaucracy that blocks investment and we will make sure that every regulator in this country take growth as seriously as this room does.’
But businesses are raging over the Government’s major reforms to workers’ rights, which will grant staff access to sick pay, maternity and paternity pay and legal protection from unfair dismissal as soon as they start a job.
One industry source said last night that it was ‘ridiculous for the PM to make grand claims about cutting red tape for investors while piling on bureaucracy for each and every possible job’.
‘You can’t help but feel the Prime Minister prefers important sounding parties to important in reality policy. Business makes decisions based on the business case, not bad sales pitches from politicians playing CEO.’
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Cabinet minister says Labour only promised to keep national insurance on hold for workers
It comes as new figures show employers have slammed the brakes on hiring amid fears over Labour’s tax hikes and workers’ rights plans.
The British Chambers of Commerce (BCC) said just 56 per cent of firms had tried to recruit new workers in the past three months.
That was the lowest level since the second quarter of 2021 when Britain was still mired in Covid restrictions. Jane Gratton, deputy director of public policy at the BCC, said: ‘There’s considerable uncertainty for business right now.
They are concerned about potential tax rises heading their way in the Budget. They’re also worried that changes to employment rights might increase costs and complexity.
‘The Government needs to drive growth and ensure there’s no drop in momentum. The upcoming budget is a golden opportunity to give firms reason to be optimistic.’
The poll of more than 5,100 firms is the latest to show Labour’s threat to increase taxes in the Budget is putting the dampeners on jobs and investment, while the introduction of a raft of new workers’ rights is also making them hesitant about hiring.
Meanwhile, a separate survey by Deloitte of finance directors at top UK companies showed a bounce in business confidence following the election had ebbed away – with geopolitical worries including the possibility of a US downturn being the biggest concern.
And a ‘business barometer’ published by Lloyds Bank showed confidence had reached a nine-year high this year – but started to slip last month thanks to a ‘fall in economic optimism’
