London Daily

Focus on the big picture.
Sunday, May 11, 2025

Labour says UK risks falling behind Poland

Labour says UK risks falling behind Poland

Sir Keir Starmer has set out his plans for the economy, warning that without new policies the UK risks falling behind eastern European nations.
The Labour leader will host a round table in the city of London on Monday, with prominent business guests.

He will flesh out more details of his "mission" for the UK to achieve the fastest sustainable growth in the G7.

Tesco chairman John Allan, and former Bank of England governor Mark Carney are due to attend.

Sir Keir is drawing together previously announced policies as well as setting out further details of Labour's economic strategy - including promises to provide clear rules for government taxation and spending, and announcing a new enhanced role for the Office for Budget Responsibility (OBR).

Labour said the Tories had put the country on a "path of decline" and if recent growth trends continued, people in the UK would be worse off than Poland's population by 2030.

It said UK GDP per capita grew at an average annual rate of 0.5% in real terms between 2010 and 2021, while Poland's grew 3.6%, (based on World Bank data).

If those trends continued, by 2030 people in the UK would each be £500 ($600) poorer than Poland's population, Labour said, and by 2040 would have fallen behind Hungary and Romania.

Labour announced last week that if elected, it would pursue five "missions": the first is for the UK to achieve the "highest sustained growth" in the G7.

The other missions - broad themes on what Labour wants to achieve in power - include turning the UK into a "clean energy superpower", improving the NHS, reforming the justice system and raising education standards.

The party has promised to provide more specific policy proposals later in the year. But Monday's event is to flesh out its general strategy for boosting economic growth and to sound out business.

"We've got to find the courage to take on vested interests," Sir Keir is scheduled to say later.

"So, if you think it's not government's role to shape markets, that we're only here to serve them; or that a labour market which locks in low pay and productivity is something beyond reform; or that the planning system should favour the already wealthy, not the new houses, wind farms and laboratories we need to create more wealth… then that's not going to work for us," he will say.

In the first indication of how the mission on the economy would be measured, Labour said it would look at growth in output per person and compare that to other countries.

It also plans to look at living standards via the measure of disposable income for the median UK household, with the ambition to make progress towards eliminating the gap between the median British family and those in France and Germany by the end of the parliament.

However Sir Keir will also suggest he should be judged on whether people "feel better off" at the end of a Labour term in government.

Paul Drechsler, former president of the business organisation the CBI, said Labour's strategy reflected the views of many of the country's business leaders, and he welcomed its commitment to "greater certainty and stability".

Labour has been wooing the business community, suggesting it would provide long-term, stable government in contrast to last autumn's rapid change of Conservative prime ministers, and the disruption on the financial markets.

However, Sir Keir has previously said he supports the increase in corporation tax - from 19% to 25% - that is coming in April, arguing that businesses are more concerned about stability than taxes.

He has also previously promised sweeping constitutional reform, which he said would unleash potential in the nations and regions of the UK, and has said he would "make Brexit work".

Tesco's Mr Allan said: "Speaking personally, I believe many businesses will welcome Labour's commitment to achieving sustained economic growth.

"Growth can best be achieved by a partnership between government and business. Now we need to work together to create a detailed plan so that if Labour form the next government, they can hit the ground running on day one."

Lord Sainsbury, former chairman of the supermarket chain, has made a £2m donation to the Labour Party. He was a regular Labour donor when the party was last in power and served as science minister under Tony Blair but stopped donating in 2016.
Newsletter

Related Articles

0:00
0:00
Close
Retired British police officer arrested over ‘thought crime’ tweet
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
Newark Mayor Ras Baraka Arrested at ICE Facility Amid Congressional Visit
India-Pakistan conflict may be first test for Chinese military tech
Bill Gates Announces Plan to Wind Down Philanthropic Foundation and Disperse Wealth
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
×