‘Not enough substance’: Why business wants more from Reeves on Labour plans

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Rachel Reeves praised by City insiders for 'assured' speech and having the 'air of a future Chancellor'. But they crave more policy detail

Rachel Reeves praised by City insiders for 'assured' speech and having the 'air of a future Chancellor'. But they crave more policy detailRachel Reeves has more to do before she wins over UK business to Labour’s plans for the economy, City insiders have toldThe shadow Chancellor set out her vision on Tuesday when she told an audience in the City of London that growth in Britain needed to be rooted in greater economic security for the nation and its workers.

“The plans to force the Bank of England to consider climate change when making decisions as a key consideration is likely to make it easier to push through supply side reforms once in Government,” the City executive said.While Labour has not confirmed a great deal on its economic policies, it is unfair to say the party has not revealed anything.Labour has also pledged to avoid wealth taxes and tax rises on working people.

“She claims this is a ‘new’ model, but really at the heart of her agenda is the old, failed idea of a state-directed economy.”So, what does the City want from Reeves? Top of the list a reform of business taxes, closing the talent and training gap, setting out its business rates plan and incentives for businesses to invest.

“We’d also like to see the overall burden of the rates reduced or just the rate itself to go down. It currently always increased by inflation every year. Whereas we’d like to see just have the rate set and any change is just determined by the value of properties.” The need to help business to get the human talent they need for growth is also seen as key. A director of one of the UK’s largest manufacturing firms told“We have an apprentice pot of money of around £2.7bn, but it too complicated to access and too prescriptive on how companies can bring people in,” he said.

“Similarly, we do not know how Labour plans to approach inward investment and how it will attract international investment through trade agreements, reciprocal arrangements and incentives.”Another issue of some concern to the business community is Labour’s pledge to introduce full workers’ rights from the first day on the job.

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Rachel Reeves Rejects Accusation Labour Offering Just 'Crumbs' Of InvestmentNed Simons is politics news editor for HuffPost UK based in London. He can be reached by email at ned.simonshuffpost.com or on Twitter nedsimons.
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