Starmer dismisses Tory leadership contest as ‘Thatcherite cosplay’

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Starmer says the government needs an industrial strategy. This government does not have one, he says. And an industrial strategy isn’t about growing the size of the state; it is about partnership with business and university.

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He confirms that Labour would legislate to set up a new industrial strategy council.

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He suggests this could shape policy like the Climate Change Committee, or the Office for Budget Responsibility. It could focus on national priorities that go beyond the political cycle, he says.

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On the topic of being financially responsible, Starmer says Labour will set a target to reduce debt as an overall share of our economy.

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The Tories are proposing to waste more money. But Labour will offer sound finances, he says.

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There will be no magic money tree economics with us.

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Starmer says Labour’s approach to boosting growth will be based on five principles.

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First we will be financially responsible.

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Second, we will be distinctively British.

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Third, we will work in partnership with business.

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Fourth, we will re energise communities and spread economic power.

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And fifth, we will refocus our investment on boosting productivity.

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Starmer says Britain’s economy is weaker than its competitors. That is why Labour is making growth a priority.

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He says tonight people will hear from two other candidates to be the next PM.

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But he says Rishi Sunak is “the architect of the cost of living crisis”. And Liz Truss is “the latest graduate from the school of magic money tree economics”.

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Neither of them have the answers to the economic challenges that we face, Starmer says.

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Under the Tories the average British family has become £1,800 poorer than their equivalents in advanced economies, he claims.

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(That figure, presumably, is based on how much richer the UK would be if the economy had grown in line with international norms over the last 12 years.) He goes on:

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That’s not just a failure of policy. It’s a failure of philosophy and this leadership contest is not going to change that.

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Keir Starmer is due to start his speech on Labour’s plan for growth shortly.

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There is a live feed here.

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Rachel Reeves, the shadow chancellor, is introducing him. She says families are due to be hit by a huge hike in energy bills in October. She says Labour will address this, but it will have a plan for growth too.

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She says she would like to be able to introduce Starmer as the next PM. But who knows how many more leaders the Tories will get through, she says. So she introduces him as the next Labour prime minister.

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James Cleverly was the most senior member of the government giving interviews this morning. Cleverly is education secretary. (But only just, according to Caroline Wheeler and Harry Yorke in the Sunday Times yesterday; writing about Boris Johnson’s final reshuffle, they report: “Another former cabinet minister, who briefly took charge of the reshuffle, said “Not So” Cleverly, as he is known by rivals, was suggested as education secretary as a joke. He was later appointed.”) But this morning Cleverly was answering questions mostly in his capacity as a leading support of Liz Truss, the foreign secretary, for the Tory leadership.

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Here are the main points from his interview.

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James Cleverly said that Rishi Sunak, Truss’s rival for the Tory leadership, is only just catching up with her in terms of taking the threat posed by China seriously. As my colleagues Aubrey Allegretti and Vincent Ni report, Sunak is describing China as the biggest long-term threat to Britain.

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In response, Cleverly said:

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[Truss has] been talking about [the influence of China] for a long time. So I’m very glad that Rishi’s now talking about the issues that Liz has been talking about for quite some time, and of course we do need to look at China’s influence, not just on the world stage but here in the UK.

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Cleverly said he would not say whether the government would close the Confucius institutes attached to British universities, as Sunak is proposing. He said:

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I’m in a position as education secretary where it would be unwise for me to make significant policy announcements in response to the positions that have been put out through a leadership campaign.

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He said he would like to remain education secretary if Truss became PM.

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He attacked Sunak’s plan to house asylum seekers on cruise ships as bad for tourism. In a briefing issued at the weekend Sunak said he wanted to stop people coming to the UK seeking asylum being housed in hotels, and his campaign said he would “deliver thousands of new beds through a range of existing and novel solutions, including the use of cruise ships”. Commenting on this, Cleverly said:

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I haven’t seen the practicalities of that. I do think that it would be interesting to see where those ships would be moored because typically the places where you can moor a cruise ship are holiday destinations.

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And I’m not completely sure that that would suit the tourist industry in our coastal towns which need I think a boost rather than what might be reputationally quite a negative thing, but I will look at that.

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What is interesting about this is that initially, in a briefing attacking the Sunak plan yesterday, the Truss camp criticised this on the grounds that holding migrants indefinitely on cruise ships would be “illegal under the Human Rights Act and the ECHR [European convention on human rights]”. But this argument is probably too “woke” for Conservative party members, not all of whom are big fans of the Human Rights Act, and so instead Cleverly latched onto a different objection.

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Cleverly said that Truss did not want to see interest rates rise to 7%. When it was put to him that Patrick Minford, the economist backing Truss’s plan for immediate tax cuts now, accepted that rates might have to rise to that sort of level in response, to contain inflation, Cleverly replied:

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Ultimately we want to keep interest rates modest.

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A big jump in interest rates will hit people who are already finding bills difficult, and that’s not what we want to see. But ultimately what we need to do is make sure that we have that economic boost.

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Cleverly said he would be “comfortable” to see Boris Johnson offered a post in Truss’s cabinet. But it was a decision for her, he said. In the TV debate last Sunday, Truss indicated she would not offer Johnson a job.

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BST","blockLastUpdated":1658743253000,"blockLastUpdatedDisplay":"11.00 BST","blockFirstPublished":1658741449000,"blockFirstPublishedDisplay":"10.30 BST","blockFirstPublishedDisplayNoTimezone":"10.30","title":"Truss has been warning about threat posed by China for much longer than Sunak, says one of her key allies","contributors":[],"primaryDateLine":"Mon 25 Jul 2022 11.08 BST","secondaryDateLine":"First published on Mon 25 Jul 2022 09.29 BST"},{"id":"62de44bb8f08d0ef4fa8e4fd","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Good morning. Keir Starmer will make a speech this morning arguing that a key problem facing Britain is that, for at least a decade, growth has been feeble. It is an argument that Starmer and his shadow chancellor, Rachel Reeves, have been making for some time (the trend rate of growth was higher before the financial crash, when Labour was in power, and low growth ultimately means lower living standards and less money for public services). But suddenly this territory is now rather crowded. In the Tory leadership contest Rishi Sunak and Liz Truss are both promising to unleash growth, and some of Truss’s comments in particular about how dismal the government’s record has been over the last decade could be copy and pasted straight into a Starmer speech.

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Starmer will address that point in his speech. According to extracts released in advance, here are two of the points he will make.

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Starmer will dismiss the Tory leadership contest as “Thatcherite cosplay”. He will say:

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\n

You will see a clear contrast between my Labour party and the Thatcherite cosplay on display tonight [in the Tory leadership debate]. The difference between a Labour party ready to take Britain forward. And a Tory party that wants to take us back into the past.

\n

Between Labour growth and Tory stagnation. That will be the choice at the next election and we are ready.

\n

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And he will say that promoting growth is now as important for Labour as redistribution. He will say:

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\n

The approach to growth I have set out today will challenge my party’s instincts.

\n

It pushes us to care as much about growth and productivity, as we have done about redistribution and investment in the past. Not to hark back to our old ideas in the face of new challenges.

\n

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As my colleague Robert Booth reports in his preview of the speech, Starmer will also set out plans for a new industrial strategy council, established on a statutory footing to become “a permanent part of the [economic] landscape”.

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Here is the agenda for the day.

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10.30am: Keir Starmer gives a speech in Liverpool on Labour’s policy for growth.

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11.30am: Downing Street holds a lobby briefing.

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9pm: Liz Truss debates Rishi Sunak in Stoke-on-Trent in the BBC’s Tory leadership debate.

","elementId":"ef6c1dcf-ff9f-4e9d-97ca-d7a27d6fce35"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

I try to monitor the comments below the line (BTL) but it is impossible to read them all. If you have a direct question, do include “Andrew” in it somewhere and I’m more likely to find it. I do try to answer questions, and if they are of general interest, I will post the question and reply above the line (ATL), although I can’t promise to do this for everyone.

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If you want to attract my attention quickly, it is probably better to use Twitter. I’m on @AndrewSparrow.

","elementId":"bb884233-9ee3-43c8-bef0-9045b9b9b2d4"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Alternatively, you can email me at andrew.sparrow@theguardian.com

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Key events

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