Chuka Umunna sets out Labour’s long-term plan for economic growth

Chuka Umunna, the Shadow Business Secretary, will today highlight how the Government’s Regional Growth Fund will miss its investment target by almost £1billion – a failure that will lead to “long-term economic decline”. He will slam the “flagship” scheme as being “mired in chaos and delay”.

In a speech to local businesses in North London, Umunna will also set out “Agenda 2030”, Labour’s long-term plan to build a new economy that is based on a highly-skilled, highly-paid workforce. This plan would see the economic growth based on people earning, rather than the low-wage, insecure jobs the current recovery is based on. It will incorporate Lord Adonis’ recommendations to devolve £30billion worth of spending away from Whitehall to regions.

He will say:

“There are now less than nine months until the next general election, and Britain faces an urgent choice between the Labour future of long-term, better balanced growth, and the Tory threat of long-term decline, low wages and insecurity at work.

“We are now into the fifth year of Tory failure. The Conservative Party came to office promising to rebalance Britain’s economy across all the regions with an export and investment led boom, and have failed. They abolished Regional Development Agencies without putting in place a proper replacement and their flagship Regional Growth Fund has been mired in chaos and delay. Now the government’s own figures show the scheme failing to meet its private investment target by almost £1billion.

“We know that we will need to act where this government has failed, to drive strong growth for the long-term across the whole of the UK. That’s why, in his report for us, Lord Adonis set out radical plans to devolve £30 billion of budgets away from Whitehall. And we know also that businesses think in investment cycles that stretch well into the next decade, and that politicians need to do the same. That is why Labour has set out our ‘Agenda 2030’ plan to earn and grow our way to a higher standard of living for all across all regions.

“There can be no future for Britain competing on the basis of low wages and insecurity with a Tory led government focused on short-term advantage that will lead to long-term economic decline. If we are going to pay our way in the world and generate growth that is better balanced and benefits all, we need to take a different and much longer-term approach – that is what Labour offers to ensure people can meet their future aspirations and dreams.”