Labour accuses government of a “consistent failure to champion exports”

Labour’s Gareth Thomas has accused the government of a “consistent failure to champion exports” after it was revealed that growth in UK exports to the G20 was the lowest in the G7.

House of Commons data, uncovered by Labour, revealed that the UK was the only nation in the G7 whose exports to the G20 fell between 2010 and 2021 – by 1.1%. The US saw its exports to the G20 rise by 41.4% during the same period.

Italy’s exports grew by 38.9%, while Germany and Canada saw their exports increase by 29.7%. The average growth across the G7 nations was 25.7%, with every nation apart from the UK and Japan experiencing double-digit growth since 2010.

Labour’s shadow trade minister said: “These devastating figures underline a decade of weak economic growth with a consistent failure to champion exports and help British businesses get their products into overseas markets.

“When the Conservatives’ own former export minister thinks the government isn’t doing enough to help, it’s time for change. It exposes the claims of trading success from Liz Truss and other leading Conservatives as yet more fiction from this failing party.

“Labour will make economic growth our priority for government to tackle the cost-of-living crisis and increase the number of well-paid jobs.

“As part of our growth plan, we will reform the trade deal with Europe to reduce red tape, establish a new industrial strategy to boost manufacturing and boost export promotion.”

Former exports minister Mike Freer criticised the Trade Department in July for failing to do enough to help firms send goods overseas.

Keir Starmer gave a speech to the Centre for European Reform think tank in July, setting out Labour’s “plan to make Brexit work”. The Labour leader announced that the party would not would take the UK back into the EU or look to join the single market or a customs union.

Starmer said: “Nothing about revisiting those rows will help stimulate growth or bring down food prices or help British business thrive in the modern world. It would simply be a recipe for more division.

“It would distract us from taking on the challenges facing people, and it would ensure Britain remained stuck for another decade.”

Starmer said Labour’s plan would “tear down unnecessary barriers” to trade, including through the creation of a new veterinary agreement for trade in agri-products between the UK and EU.

In a separate speech later in July, the Labour leader declared that his party “will fight the next election on economic growth” and that he had told the shadow cabinet that “every policy they bring forward will be judged by the contribution it makes to growth and productivity”.

Starmer also announced the establishment of an ‘industrial strategy council’. He said the council would become a “permanent part of the landscape”, which sets out “our strategic national priorities that go beyond the political cycle” and “brings in the expertise of business, science and unions”.