Starmer intends to focus on post-market growth

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Prime Minister Sir Keir Starmer will on Monday pledge to make Britain the “best government partner” for the world’s artificial intelligence companies, as he tries to bolster the UK’s growth prospects against a bleak economy and of politics.

Starmer, writing for the Financial Times, will argue “Britain’s values ​​of democracy, open trade and the rule of law” make the UK a natural place for AI companies to invest, and a commitment to sweep away planning restrictions and to create “new areas of AI growth.”.

“I am determined that the UK will be a great place to start and grow an AI business,” he writes. “I know that the growth of this area cannot be managed by the government. But it is the government’s job to make sure that there are the right conditions.”

Starmer is hoping to bounce back after a week in which his economic plans were battered by the market, leaving Chancellor Rachel Reeves facing the need to cut spending or raise taxes to save the plans. his finances continue.

Reeves, who returns from a visit to China on Monday, will this week “hook up” regulators to tell them to be more ambitious in removing barriers to growth.

Meanwhile Starmer has faced calls from Kemi Badenoch, the Tory leader, to sacked his City minister Tulip Siddiq.

Last week Britain’s borrowing costs rose to close to 16 years old Against high inflation and fears that the Reeves Budget to raise taxes has contributed to sluggish growth.

The feeling of economic despair was increased by a survey of the UK’s chief financial officers by Deloitte, which showed that business confidence fell to a two-year low in the fourth quarter.

The survey found that 26 percent of CFOs reported feeling pessimistic about their business prospects over the past three months, the first time sentiment has dipped into the region. negative from the second quarter of 2023.

CFOs have said that cost-cutting measures will be their main response to Reeves’ £25bn increase in national insurance contributions.

Deloitte says UK companies expect to reduce capital expenditure, discretionary spending and report a sharp drop in hiring expectations from the pandemic. However, the survey found that confidence is higher than the prices seen in 2020 and 2022.

Mel Stride, the shadow deputy, told the BBC that “business confidence is going down the drain because of the actions the government has taken” and insisted Reeves should have withdrawn. his visit to China to calm the markets.

But one adviser to the prime minister said: “Are you seriously saying that he would have given up his trip to stay at home for the weekend to talk to the closed market?” It would rightly have been seen by the markets as a scare. ”

A colleague at Starmer said any suggestion that Reeves’ status was in jeopardy was “absolute rubbish”.

Starmer continues to believe that Reeves’ October Budget, which sought to stabilize public finances and boost public services with a £40bn tax increase, will be confirmed after a long time, despite have market turmoil.

Reeves is planning his speech on growth, but it has been delayed until after his trip to the World Economic Forum in Davos later this month.

On Thursday he will call eight officials to explain what they are doing to boost growth. To him Mansion House Speech in November he told watchdogs: “The UK is managing risks, but not managing for growth.”