Britain will never succeed if it tries to compete with a low wage, low skill business model – a race to the bottom in which ordinary, working people
are always the losers. This approach will not secure more and better paid jobs for the longer-term. Nor will it lead to the more resilient and
competitive economy that Britain needs following the financial crisis.
Like families, businesses are being hit by the cost of living crisis too. Many small and medium sized firms are struggling with rising costs and a lack of finance from the banks – a problem that must be solved in order to get our economy growing in a more balanced way.
We believe that prosperity must be built by the many, not the few. That means winning a race to the top, with well paid, high skilled jobs in new industries, and more people setting up, leading and succeeding in business. This private sector growth needs to be supported by an active
government, investing for the long-term, setting clear priorities, and enabling businesses to grow.
Labour’s focus will be on raising productivity, generating sustainable growth, creating more well-paid jobs, and broadening our economic base
across more regions and sectors. To support this, Labour will reform our banking system so that it works for businesses and families, back small
business that is the backbone of our economy, including by ensuring they are paid on time by their suppliers, and devolve power from Whitehall to our towns and cities.
• Cut business rates in 2015 and then freeze them in 2016 for over 1.5 million business properties.
• Devolve £30 billion of funding and give control over the full revenue from the growth in business rates to powerhouse economic regions so they can back local growth.
• Reform our banking system: taxing bank bonuses and increasing competition with at least two new challenger banks on the high street.
• Introduce a new levy on payday lenders and use the funds raised to boost low cost alternatives like credit unions.
• Create a British Investment Bank along with a network of regional banks to boost lending for small businesses to grow.
• Establish an Infrastructure Commission to plan and secure the infrastructure that Britain needs.
• Safeguard the services consumers and businesses get from the privatised Royal Mail and keep the remaining 30 per cent in public ownership.