Connect with us
...

Business

Starmer says he’s not talking down UK economy

Published

on

Sir Keir Starmer has said he is not “talking down” Britain when warning that Poland is on course to overtake the UK within a decade in terms of the size of its economy per person.

The Labour leader was launching details of his party’s “mission” to make the UK the fastest growing G7 economy.

He was speaking to business leaders and economists in the City of London.

Labour’s analysis said Bulgaria and Romania could also overtake the UK if current trends continued until 2040.

Asked in a BBC interview if he was talking down the British economy, Sir Keir said: “No, I think what’s talking down Britain is having absolutely no plan, burning through three prime ministers and four chancellors in one year.

“My main concern has been that we’ve got fantastic potential and talent and skills and innovation in Britain but we haven’t got the growth that we need. We need a plan for growth, a strategy for growth.”

Monday’s announcement from Labour reveals a little bit more about the opposition’s economic priorities. It will measure its G7 chart-topping growth mission on a per capita basis.

Labour explicitly says a “bad Brexit deal” is exacerbating the nation’s economic challenges, calling for a “reset” to relations with Europe.

It canvases for ideas on both a closer relationship with Europe and the UK response to the US and Europe pouring investment into green and high tech businesses.

Asked to flesh out what Labour’s “reset” in relations with the EU would mean in practice, Sir Kier reiterated that his party would not be rejoining the European Single Market or Customs Union, but did say he wanted to pursue “every opportunity” for trade deals with countries across the world.

He said Monday’s Northern Ireland protocol deal would open the door to stronger post-Brexit relations with Europe, and that was one of the reasons he would lend Labour’s votes to the PM to support the deal.

“I do think we need to reset that relationship with the EU and want to see the UK and EU have a better relationship than we’ve got now. And I do think that progress on the Protocol is a first step”.

Labour announced last week that if elected, it would pursue five “missions”: the first is for the UK to achieve the “highest sustained growth” in the G7.

The other missions – broad themes on what Labour wants to achieve in power – include turning the UK into a “clean energy superpower”, improving the NHS, reforming the justice system and raising education standards.

The party has promised to provide more specific policy proposals later in the year.

“We’ve got to find the courage to take on vested interests,” Sir Keir said in his speech earlier on Monday.

“So, if you think it’s not government’s role to shape markets, that we’re only here to serve them; that a labour market which locks in low pay and productivity is something beyond reform; or that the planning system should favour the already wealthy, not the new houses, wind farms and laboratories we need to create more wealth… then that’s not going to work for us,” he said.

In the first indication of how the mission on the economy would be measured, Labour said it would look at growth in output per person and compare that to other countries.

Labour said the Tories had put the country on a “path of decline” and if recent growth trends continued, people in the UK would be worse off than Poland’s population by 2030.

It said UK GDP per capita grew at an average annual rate of 0.5% in real terms between 2010 and 2021, while Poland’s grew 3.6%, (based on World Bank data).

If those trends continued, by 2030 people in the UK would each be £500 ($600) poorer than Poland’s population, Labour said, and by 2040 would have fallen behind Hungary and Romania.

It also plans to look at living standards via the measure of disposable income for the median UK household, with the ambition to make progress towards eliminating the gap between the median British family and those in France and Germany by the end of the parliament.

However Sir Keir also suggested he should be judged on whether people “feel better off” at the end of a Labour term in government.

Business target

Labour has been wooing the business community, suggesting it would provide long-term, stable government in contrast to last autumn’s rapid change of Conservative prime ministers, and the disruption on the financial markets.

However, Sir Keir has previously said he supports the increase in corporation tax – from 19% to 25% – that is coming in April, arguing that businesses are more concerned about stability than taxes.

He has also previously promised sweeping constitutional reform, which he said would unleash potential in the nations and regions of the UK, and has said he would “make Brexit work”.

Tesco chairman John Allan said: “Growth can best be achieved by a partnership between government and business. Now we need to work together to create a detailed plan so that if Labour form the next government, they can hit the ground running on day one.”

Reports /TrainViral/

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Six tonnes of cocaine found in banana shipment

Published

on

By

Sniffer dogs in Ecuador have found 6.23 tonnes of cocaine hidden in a banana shipment, police say.

The dogs alerted their handlers, who seized 5,630 parcels filled with a white substance that later tested positive for cocaine.

The shipment was destined for Germany, officials said, and would have been worth $224m (£173m) had it reached its destination.

Five people had been arrested following the discovery, according to the prosecutor-general’s office.

Police said they had found the massive cocaine haul during a routine inspection of container stored at Posorja deepwater port south-west of Ecuador’s largest city, Guayaquil.

The cocaine parcels had been hidden beneath crates of bananas destined for export.

One of those arrested in connection to the drug discovery was a representative of the export company responsible for the shipment, whom prosecutors said had been present at the inspection and gave officials the names of the four other suspects.

They include the managers of the banana plantation where the cocaine is suspected to have been added to the fruit shipment, as well as the driver who took the container to the port.

Ecuador has become a major transit country for cocaine produced in neighbouring Peru and Colombia, with transnational criminal gangs using Ecuador’s ports to ship the drug to Europe and the US.

Last year, Ecuadorean security forces seized more than 200 tonnes of drugs, most of it cocaine. Only the US and Colombia seized more drugs in 2023.

Gangs have caused a wave of violent crime in Ecuador, leading President Daniel Noboa to declare a state of emergency and deploy tens of thousands of police officers and soldiers in an effort to combat them.

These security forces have stopped large amounts of cocaine from being shipped to Europe.

In January, officers found the largest stash ever to be seized in Ecuador – 22 tonnes of cocaine – buried in a pig farm.

However, extortion, kidnappings and murders remain high in the Andean country.

Reports /Trainviral/

Continue Reading

Business

Thailand expands v-free entry to 93 countries

Published

on

By

Thailand has expanded its visa-free entry scheme to 93 countries and territories as it seeks to revitalize its tourism industry.

Visitors can stay in the South-East Asian nation for up to 60 days under the new scheme that took effect on Monday,

Previously, passport holders from 57 countries were allowed to enter without a visa.

Tourism is a key pillar of the Thai economy, but it has not fully recovered from the pandemic.

Thailand recorded 17.5 million foreign tourists arrivals in the first six months of 2024, up 35% from the same period last year, according to official data. However, the numbers pale in comparison to pre-pandemic levels.

Most of the visitors were from China, Malaysia and India.

Tourism revenue during the same period came in at 858 billion baht ($23.6bn; £18.3bn), less than a quarter of the government’s target.

Millions of tourists flock to Thailand every year for its golden temples, white sand beaches, picturesque mountains and vibrant night life.

The revised visa-free rules are part of a broader plan to boost tourism.

Also on Monday, Thailand introduced a new five-year visa for remote workers, that allows holders to stay for up to 180 days each year.

The country will also allow visiting students, who earn a bachelor’s degree or higher in Thailand, to stay for one year after graduation to find a job or travel.

In June, authorities announced an extension of a waiver on hoteliers’ operating fees for two more years. They also scrapped a proposed tourism fee for visitors flying into the country.

However some stakeholders are concerned that the country’s infrastructure may not be able to keep up with travellers’ demands.

“If more people are coming, it means the country as a whole… has to prepare our resources to welcome them,” said Kantapong Thananuangroj, president of the Thai Tourism Promotion Association.

“If not, [the tourists] may not be impressed with the experience they have in Thailand and we may not get a second chance,” he said.

Chamnan Srisawat, president of the Tourism Council of Thailand, said he foresees a “bottleneck in air traffic as the incoming flights may not increase in time to catch up with the demands of the travellers”.

Some people have also raised safety concerns after rumours that tourists have been kidnapped and sent across the border to work in scam centres in Myanmar or Cambodia.

fatal shooting in Bangkok’s most famous shopping mall last year has also caused concern among visitors.

Reports /Trainviral/

Continue Reading

Business

Royal Mail will deliver letters forever

Published

on

By

The prospective new owner of Royal Mail has said he will not walk away from the requirement to deliver letters throughout the UK six days a week, as long as he is running the service.

“As long as I’m alive, I completely exclude this,” Czech billionaire Daniel Kretinsky told the BBC.

Mr Kretinsky has had a £3.6bn offer for Royal Mail accepted by its board.

Shareholders are expected to approve the deal in the coming months, but the government also has a say over whether it goes ahead.

Currently the Universal Service Obligation (USO) requires Royal Mail to deliver letters six days a week throughout the country for the same price. But questions have been raised over whether the service could be reduced in the future.

In an exclusive interview with the BBC, Mr Kretinsky also said he would be willing to share profits with employees, if given the go-ahead to buy the group.

However, he appeared to reject the idea of employees having a stake in Royal Mail, which unions have called for in exchange for their support.

The Royal Mail board agreed a £3.6bn takeover offer from Mr Kretinsky in May for the 500-year-old organisation, which employs more than 150,000 people. Including assumed debts, the offer is worth £5bn.

But because Royal Mail is a nationally important company, the government has the power to scrutinise and potentially block the deal.

As well as keeping the new government on side, Mr Kretinsky also faces the task of convincing postal unions that the proposed deal will benefit employees.

The USO is a potential sticking point for both the government and unions.

Royal Mail is required by law to deliver letters six days a week and parcels five days a week to every address in the UK for a fixed price.

How well this has actually been working in practice is a different matter. Ten years ago, 92% of first class post arrived on time. By the end of last year it was down to 74%, according to the regulator Ofcom.

Last year the regulator fined Royal Mail £5.6m for failing to meet its delivery targets.

Royal Mail has been pushing for this obligation to be watered down. It wants to cut second class letter deliveries to every other weekday, saying this will save £300m, and lead to “fewer than 1,000” voluntary redundancies.

‘Unconditional commitment’

Mr Kretinsky has committed in writing to honouring the USO, but only for five years.

And after that, in theory, the new owners could just walk away from it.

However, Mr Kretinsky told the BBC: “As long as I’m alive, I completely exclude this, and I’m sure that anybody that would be my successor would absolutely understand this.

“I say this as an absolutely clear, unconditional commitment: Royal Mail is going to be the provider of Universal Service Obligation in the UK, I would say forever, as long as the service is going to be needed, and as long as we are going to be around.”

Mr Kretinsky added that the written five-year commitment was “the longest commitment that has ever been offered in a situation like this”.

Woman's hand posting a letter into a red post box

Another potential stumbling block for the deal, however, is how the company will be structured.

Unions would like to see the company renationalised, but Dave Ward, general secretary of the Communication Workers Union (CWU), told the BBC that would be “difficult in the current political and economic environment”.

Instead, what the CWU is pushing for is “a different model of ownership” – that is, where the employees part-own the business.

To get its support for the takeover, the union wants employees to share ownership of the company, along with other concessions including board representation for workers.

It says profit sharing is “not going to be enough to deliver our support and the support of the workforce”.

If the union doesn’t get what it wants, it won’t rule out industrial action, Mr Ward said. Its members went on strike in 2022 and 2023.

Although Mr Kretinsky said he is “very open” to profit sharing, he is not in favour of shared ownership.

“I don’t think the ownership stake is the right model,” he said. “The logic is: share of profit, yes, [but an] ownership structure creates a lot of complexity.

“For instance, what happens if the employee leaves? He has shares, he is leaving, he is not working for the company, he [still] needs remunerating.”

Mr Kretinsky said he didn’t want to create “some anonymous structure” but instead “remunerate the people who are working for the company, and creating value for the company”.

The union is also concerned about job losses and changes to the terms and conditions of postal workers’ contracts.

Mr Kretinsky has guaranteed no compulsory redundancies or changes in terms and conditions but only until 2025.

“If we are more successful, and we have more parcels to be delivered, we need not less people, but we need more people,” he said. “So really, job cuts are not part of our plan at all.”

He said if the management, union and employees work together, “we will be successful”.

Another concern is the potential break-up of the business.

The profit for Royal Mail’s parent company last year was entirely generated by its German and Canadian logistics and parcels business, GLS. Royal Mail itself made a loss.

Mr Kretinsky has promised not to split off GLS or load the parent company with excessive debt, although borrowings will rise if the deal goes through.

But he has a way to go to convince the CWU.

“I can’t think of any other country in the world that would just just hand over its entire postal service to an overseas equity investor,” Mr Ward of the CWU said.

However, Mr Kretinsky said that the postal unions “do understand that we are on the same ship, and that we need this ship to be successful, and that if we are there, we don’t have any real problems to deal with, because the sky is blue, and it’s blue for everybody.”

The union cannot stop this deal but the government can block it under the National Security and Investment Act.

Business Secretary Jonathan Reynolds has said he will scrutinise the assurances and guarantees given and called on Mr Kretinsky to work constructively with the unions.

Mr Kretinsky may say that he and the unions are ultimately on the same ship but, as things stand, they are not on the same page.

Who is Daniel Kretinsky?

Daniel Kretinsky started his career as a lawyer in his hometown of Brno, before moving to Prague.

He then made serious money in Central and Eastern European energy interests.

This includes Eustream, which transports Russian gas via pipelines that run through Ukraine, the Czech Republic and Slovakia.

He then diversified into other investments, including an almost 10% stake in UK supermarket chain Sainsbury’s and a 27% share in Premier League club West Ham United.

The Czech businessman is worth about £6bn, according to reports.

Continue Reading

Trending

Copyright © 2024 TechDaja News.