British Prime Minister Keir Starmer.Photo: Reuters
At the key International Investment Summit in London, UK Prime Minister Keir Starmer promised to significantly simplify regulatory procedures that are holding back economic growth. The event is intended to attract the attention of international investors after Starmer’s first hundred days in office, which were marked by scandals and challenges. Bloomberg notes that his speech was intended to build confidence in the government and create favourable conditions for investment.
The summit was attended by the heads of the world’s largest corporations, including Alphabet Inc. Starmer noted that the government is serious about boosting economic growth. He assured that bureaucratic barriers to investment would be dismantled and that regulatory bodies would work to support the country’s development.
Ambition for economic growth
One of Starmer’s main objectives is to achieve the ambitious GDP growth target of 2.5% per annum. However, this will require addressing a number of problematic issues, including tax policy and industrial strategy. Former Google CEO Eric Schmidt was among the participants of the summit, and he praised Starmer’s intentions but noted that more specifics are needed to ensure further growth.
The London summit was an important step for the government in terms of attracting private investment, as Labour seeks to use business capital to “rebuild” the country. The announced projects include attracting investments worth more than £50 billion.
Controversy around DP World
However, the summit was followed by a dispute between the government and DP World Ltd. In particular, following criticism of the employment practices of the P&O Ferries subsidiary, DP World suspended its £1 billion investment plans in the UK. Although Business Secretary Jonathan Reynolds assured that the government has no plans to boycott DP World, the issues of employment and social responsibility continue to cause tension.
Impact on public finances
Labour hopes that economic growth will ease the pressure on public finances and allow for increased investment in public services. However, the government’s fiscal policy has recently come under criticism due to warnings of financial difficulties and the threat of a rising tax burden.
At the same time, heads of financial institutions, including Barclays, urged the government to avoid raising taxes for the banking sector, stressing the importance of the financial industry for the national economy.
The London summit was an important milestone for the government of Keir Starmer, which is seeking to restore international investor confidence and accelerate the recovery of the UK economy, which is facing numerous challenges.
