Sir Keir Starmer has pledged to deliver “higher living standards” across the UK by the end of this parliament – but did not put a figure on his target.
The Prime Minister aimed to flesh out his pre-election promise to kickstart economic growth, as he set out a set of new “milestones” in a major speech this morning at Pinewood Studios in Buckinghamshire.
Sir Keir vowed his government would secure “raising living standards in every part of the United Kingdom so working people have more money in their pocket as we aim to deliver the highest sustained growth in the G7”.
But he did not outline by how much he wanted to see living standards rise by, while insisting “growth must be felt by everyone, everywhere”.
He retained the wording of the ambition to top the G7 on growth, but did not commit to achieving this by the end of this Parliament in 2029, as he had previously done.
Under his plans for economic growth, he also promised voters would see the government “building 1.5m homes in England and fast-tracking planning decisions on at least 150 major economic infrastructure projects”, which he said was more than “were decided in the last 14 years combined”.
The new economic milestone comes after Starmer initially said the UK under his leadership would see the “highest sustained growth in the G7” – but the PM has now softened his language on that to an “aim”.
It follows boosted growth forecasts for the US following the reelection of Donald Trump, and widespread concerns over the impact of Labour’s tax raising Budget on jobs, investment and wages.
Starmer’s new plan for change document, which he said would land on desks across Whitehall “with a heavy thud” to galvanise civil servants to achieve the government’s targets, said: “We know that the main route to higher living standards is through good, productive jobs, stable employment, and a thriving business environment.”
The speech came as more than half of the firms surveyed by the Bank of England expect to raise prices in response to the Budget, with reductions in staff and pay also on the cards.
The Bank’s decision maker panel showed that 54 per cent of firms expect to raise prices in response to the national insurance hike. The same proportion expect to lower employment.
Sir Keir’s other milestones were to end NHS backlogs so 92 per cent of patients in England wait no longer than 18 weeks; put some 13,000 additional police and PCSOs on the streets; ensure 75 per cent of five year olds in England are ready to learn when they start school; and to put the UK on track for at least 95 per cent clean power by 2030 – despite previously promising 100 per cent.
He also took a swipe at the civil service mindset, stating: “I don’t think there’s a swamp to be drained here. But I do think too many people in Whitehall are comfortable in the tepid bath of managed decline.”