The UK Business Secretary will tell business leaders today that he wants the UK to go ‘toe to toe’ with America on growth.
Labour has come under fire for its increased taxation of businesses in successive Budgets, while it has doubled down on technologies such as AI, despite their potential to sweep away many existing jobs.
However, Peter Kyle is expected to be bullish in a speech to business leaders at Bloomberg today – including Google owner Alphabet, Facebook parent company Meta, Ford, Heathrow, Blackrock, McKinsey, BP, AstraZeneca and Greg Jackson, CEO of Octopus Energy – in which he will outline the Government’s Industrial Strategy changes.
The former Technology Secretary is expected to say: “We stood on a manifesto commitment to be the fastest growing economy in the G7. And we absolutely meant it.
“Now, in the first three quarters of last year, the UK achieved the second highest growth of that group. That is cause for optimism.
“But contrast it to the United States. The US achieved 4.3% growth over the last quarter.
“I want to fight tooth and nail with you to get that extra growth. To compete with America.
“I say this because I know what it would mean for families. The impact it would have on people’s wages. On their disposable income. On their living standards.”
A new update is expected to confirm £79 billion of investment commitments and 50,000 new, well-paid jobs secured in the last quarter.
Kyle will also confirm the names of three new business leaders to join the Industrial Strategy Advisory Council: Amelia Gould (general manager, maritime at Helsing), Keith Anderson (CEO, Scottish Power) and Dana Strong (CEO, Sky).
He is expected to say that whilst the Government has made important choices for the long term such as on rail, roads and runways, it must be just as bold at driving growth in the short term: “That means injecting real urgency into delivering our Modern Industrial Strategy.
“Taking risks. Placing the big bets on the industries that we know can win. And win big.”
Kyle will also set out the Government’s approach to regulation, such as accepting the findings of the Fingleton Review on nuclear and moving away from “pointless gold plating” of state projects.
To help bring the UK into line with the US’s levels of growth, he will argue that British businesses need help in scaling up to encourage them to stay in Britain. This will include large new investments from the British Business Bank and more firepower for UK Export Finance.
He is expected to say: “Very soon, I will be setting out how we’ll go even further to reduce that regulatory burden and ensure our most promising start-ups don’t need to leave our shores to reach their full potential.
“Over the coming days and weeks, we will be doing more – a lot more – to move the dial. To go for growth at every opportunity.”
The reception comes ahead of Kyle’s attendance at Davos next week.