Rachel Reeves will blame Brexit and “turmoil” under Liz Truss for landing Britain with a “weak” economy in a speech to representatives in Davos today.
In a breakfast meeting hosted by the US investment bank JP Morgan, the shadow chancellor will vow to restore Britain’s reputation as a place to do business, declaring that boosting private sector investment is key to the party’s growth strategy.
Reeves is being accompanied in Davos by shadow business and trade secretary Jonathan Reynolds.
The shadow chancellor will say: “We are living in a new age of insecurity. The world has become a more uncertain, volatile and dangerous place. That has become ever more acute in recent days and weeks as we see wars and conflict in Europe and the Middle East”.
She will add: “All major economies are being impacted by these global shocks, but Britain has been uniquely exposed. Fourteen years of stagnant economic growth and political uncertainty has left Britain weaker: the chaotic departure from the European Union, the turmoil under Liz Truss and now the managed decline with Rishi Sunak.
“This instability has turned businesses away, damaged our reputation and made us a less attractive place to do business.”
Chancellor Jeremy Hunt is the most senior member of the cabinet set to visit Davos. It comes as statistics published this morning show an unexpected rise in inflation to 4 per cent in December.
This is a rise from the 3.9 per cent reading in November.
Speaking at Davos, Reeves will argue that global volatility is leading to “rising energy bills, higher prices in the shops and businesses anxious about disruptions to global trade”.
She will add: “With Labour, Britain will be open to business. We will restore stability and security into our economy. We will restore Britain’s reputation as a place to do business. And we will be a trusted partner with business in delivering the change our country and our economy needs.”
“We must rebuild our nation’s economic defences so we can stand tall on the world stage once again. That is the only way we can bring about security for family finances and security for our national economy. That is the change a changed Labour party will hope to deliver if we are elected to power later this year.”
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