Labour must be willing to invest if it wants to deliver real change

The new Labour government has an opportunity to improve the lives of people up and down the country, but only if it is willing to invest in public services and paying workers properly, the New Economics Foundation (NEF) has said.

In the wake of Labour’s general election victory today, NEF chief executive Danny Sriskandarajah said the new administration could raise the money to invest through scrapping the previous government’s self-imposed fiscal rules and raising taxes on the richest.

He said:

“While the political implications of this election will be pored over in the weeks to come, the economic ones should be abundantly clear — Labour must now drastically improve the lives of people in the UK, and to do this it must be willing to invest.

“For decades, government after government has failed to invest in the people, public services and national infrastructure that are vital for a thriving economy. As a result, today, more than four in 10 households cannot afford life’s essentials.

“Sir Keir Starmer has said it is now time to deliver. To achieve this, his priorities should be ​‘investment, investment, investment’.

“This new government has many tools at its fingertips to raise money, including replacing our outdated borrowing rules and raising taxes on the wealthiest.

“Investing in paying nurses properly, repairing our crumbling schools, or building new social housing will more than pay for themselves in the long term. And investing in meaningful devolution and democratic ownership will increase trust in politics.”

ENDS

Contact

James Rush – james.rush@neweconomics.org