London Daily

Focus on the big picture.
Wednesday, Jul 02, 2025

Starmer U-turns on leadership election pledge to renationalise railways

Starmer U-turns on leadership election pledge to renationalise railways

The Labour leader pledged in 2020 to bring rail, mail, water, and energy back into common ownership - but said he now takes a "pragmatic approach" and agreed with his shadow chancellor who said the policy is no longer compatible with their strategy.

Sir Keir Starmer has suggested Labour would drop its pledge to renationalise the railways, despite repeated promises to do so.

The Labour leader insisted he took a "pragmatic" approach when asked about whether he would place rail, energy and water companies back under public ownership.

His view appears to have changed since he became leader in 2020, when he pledged to re-nationalise the sectors during his campaign. Labour's 2017 and 2019 manifestos under Jeremy Corbyn also promised it.

Sir Keir Starmer's leadership election pledges included re-nationalising the railways


Shadow chancellor Rachel Reeves earlier in the day said the policy was no longer compatible with "fiscal rules" she would introduce to restrain public spending.

Asked whether he would re-nationalise those industries, Sir Keir said: "I take a pragmatic approach rather than an ideological one, I agree with what Rachel Reeves said this morning.

"Having come through the pandemic, it's very important we have very, very clear priorities and that's why we've set out fiscal rules already as an opposition."

His comments are likely to anger the unions Labour relies heavily on for support as they prepare to hold more rail strikes this week over pay and working conditions.

Last year, Sir Keir ruled out nationalising big energy firms, again saying he was "pragmatic" about common ownership.

Sir Keir was talking after putting forward Labour's economic plan, in which he said a "new approach" was needed to reboot the British economy.

"Our economy is weaker than our competitors, less resilient, brittle, and ultimately we are all poorer for it," he told Labour supporters in Liverpool.

"That's why I'm clear: Labour will fight the next election on economic growth.

"There is no task more central to my ambitions for Britain than making the country and its people better off."

He said his goal is to "maximise the contribution we all make to national prosperity" and to ensure hard work pays and has the security needed "to get on".

"To do all that, we need three things: growth, growth, growth," he said.

Labour campaigned to renationalise key industries in 2017 and 2019


'No magic money tree economics'


Sir Keir said a Labour government would "not announce a single penny of day-to-day spending without saying how we would pay for it".

They would only borrow to invest in challenges of the future such as climate change, and would set a target to reduce debt.

"With me, with Rachel Reeves, you will always get sound finances, careful spending, strong, secure and fair growth," he promised.

"There will be no magic money tree economics with us."

Gordon Brown to look at economic devolution


He also said he has asked former prime minister and chancellor Gordon Brown to look at new forms of economic devolution to help spread power, so it is not concentrated in big cities.

And borrowing the Conservatives' "levelling up" phrase, he said Labour would not do it "from the centre", while reforms will allow devolved and local government to make "long-term financial decisions" beyond the political cycle.

He also took aim at the Tory leadership candidates, saying Rishi Sunak is "the architect of the cost of living crisis" while Liz Truss is "the latest graduate from the school of magic money tree economics".

Sir Keir added that neither of them has the answers to the economic challenges the UK faces because both of them "rage against the dying of the Thatcherite light" and "don't understand economic strength in the 21st century needs partnership".

Sir Keir said Rishi Sunak and Liz Truss 'rage against the dying Thatcherite light'


Labour's five-point economic plan:


1. Financially responsible

2. Distinctively British

3. Work in partnership with business

4. Re-energise communities and spread economic power

5. Refocus our investment on boosting productivity.

Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
×