Reeves embraces ‘Bidenomics’ as blueprint for Labor government

Shadow Chancellor Rachel Reeves will embrace “Bidenomics” on Wednesday as a template for a Labor government, saying Britain risks being “sidelined” unless it accepts that the rules of the global economy have changed Are.

In a speech in Washington, Reeves will support an “emerging global consensus” on the economy, one that will include an active state, powerful industrial policy, “friendshoring” supply chains away from China, and higher labor standards.

But Reeves told the Financial Times that his new policy of “securonomics” must be based on a “rock of fiscal responsibility” and that Labour’s flagship industrial policy – a proposed £28bn-a-year green investment program – would have to fit within it. its financial regulations.

The “Green Prosperity Plan” is Labour’s version of President Joe Biden’s $369bn Inflation Reduction Act – a massive program of subsidies and tax breaks – and Reeves said it would be at the heart of their “modern industrial strategy”.

But Reeves has also pledged to cut public debt as a share of GDP over five years, meaning he could be forced to slash a £140bn five-year green program if public finances get tighter. Could He said rules were paramount, adding: “Fiscal discipline is really important.”

Reeves said it was important to control day-to-day government spending to make room for “strategic investments” in new industries and green energy technology and that she would keep tighter controls. “Colleagues will tell you Rachel knows how to say ‘no,'” she continued.

Reeves picks Washington’s Peterson Institute to launch his new economic blueprint A new business model for Britain There is a deliberate attempt to align an alleged Labor government with the Biden administration.

She claims Britain has become less relevant in Washington in recent years and in January criticized conservatives of the Biden economic model – with Energy Secretary Grant Shapps warning that US green subsidies could lead to a “dangerous” slide in protectionism. — has amplified that trend.

“What is dangerous is that it is sitting outside and this investment is going overseas,” she said, adding that the state now needs to develop technologies, build stronger supply chains and train workers for the new economy. Had to work together.

In contrast, UK Prime Minister Rishi Sunak has refused to pursue a full-fledged industrial policy, instead prioritizing key sectors including the life sciences and creative industries.

Reeves said she was “inspired” by recent speeches by Janet YellenUS Treasury Secretary, and Jake Sullivan, Biden’s national security adviser. He also highlighted state activism in countries like Germany and Australia.

The three-day trip to the US marked a pivotal moment for Reeves: an attempt to present himself internationally and domestically as a chancellor-in-waiting. At meetings in New York and Washington he repeatedly claimed that Labor would be “open for business” under Britain.

Taxes are at a 70-year high. I don’t have plans to be a big tax-raising chancellor

Reeves’ itinerary took him to the trading floor of the New York Stock Exchange – the symbolic heart of global capitalism – where he posed for photographs under the exchange’s bell, smiling through jokes about Labor’s former hard-left leader Jeremy Corbyn .

But he argued that the rise of China and shocks from Western countries like Covid and the war in Ukraine have changed the rules of the game. These “once in a generation events keep happening”, he said.

Speaking in New York ahead of his trip to Washington, Reeves told the FT: “It is changing the way globalization and trade is done.” The new economic model was “cooperative and based on building in economic security and resilience”.

Over a coffee at Hudson Yards in Manhattan, she said there were specifically British problems that had to be addressed, confirming that Labor would overhaul planning rules to allow the construction of more homes and green projects such as onshore wind .

Reeves sees the scheduled 2025 review of Britain’s “chaotic” Brexit trade deal with the EU as a key moment to iron out friction in areas such as food and recognition of professional qualifications, but not the bloc’s single market or border Denied any UK refund in fees. Federation.

Although a Labor government would achieve tighter public finances, Reeves joked that he had no plans to impose “a special FT reader tax” or to target the wealthy beyond previously announced plans. The party would end tax exemptions enjoyed by private equity executives and private schools, and tax perks secured by individuals claiming non-domiciled status.

“Taxes are at a 70-year high,” she said. “I don’t have plans to be a big tax-raising chancellor.” Reeves said the alternative was to spur economic growth and that he had no plans to equalize capital gains tax rates with income taxes or cut tax breaks on pension contributions for high earners.

Reeves said business tax reform would focus on business rates – a big issue on Britain’s high streets – and incentives to replace headline corporation tax rates, rather than encouraging companies to invest. He said tax cuts for “working people” were a priority.

The state-educated Reeves, 44, hopes to become Britain’s first female chancellor and her team on the trip is exclusively female. A former Bank of England economist, she was posted to the UK Embassy in Washington in the 2000s, where she met her future husband, Nick Joyce, a senior civil servant.

Reeves was targeted by left-wing Labor activists for being a perceived “closet Tory”, but said the hatred has subsided as Corbyn’s supporters leave the party. He said that being close to power also helps. “Labour is in an unrecognizable position from where we were three years ago.”

Reeves was shot down on social media this week for deleting a tweet in which she was pictured with a BA business class ticket on her flight to the US, claiming she was a “Champagne socialist” , But he defended the arrangement for his first long time. Tote journey as Shadow Chancellor.

The trip, which included a dinner at the Harvard Club with New York media, business and political figures, was funded by an “Old Labor benefactor”.

“I have a very busy schedule when I’m here,” she said. “I think to work at the level I want to work at, I think it’s only fair to ask a donor to fund this trip.”

While in Washington, Reeves was scheduled to meet members of Biden’s economics team at the White House and hold talks at the US Treasury and the IMF.

Reeves, a child chess prodigy, said Labor was in a strong position to win the next election, but his hopes of becoming chancellor hinged on how the party performed next year.

“Looks like we’re a rookie on move 30,” she said. “But we are playing an opponent who usually beats us.”

Shadow Chancellor Rachel Reeves will embrace “Bidenomics” on Wednesday as a template for a Labor government, saying Britain risks being “sidelined” unless it accepts that the rules of the global economy have changed Are.

In a speech in Washington, Reeves will support an “emerging global consensus” on the economy, one that will include an active state, powerful industrial policy, “friendshoring” supply chains away from China, and higher labor standards.

But Reeves told the Financial Times that his new policy of “securonomics” must be based on a “rock of fiscal responsibility” and that Labour’s flagship industrial policy – a proposed £28bn-a-year green investment program – would have to fit within it. its financial regulations.

The “Green Prosperity Plan” is Labour’s version of President Joe Biden’s $369bn Inflation Reduction Act – a massive program of subsidies and tax breaks – and Reeves said it would be at the heart of their “modern industrial strategy”.

But Reeves has also pledged to cut public debt as a share of GDP over five years, meaning he could be forced to slash a £140bn five-year green program if public finances get tighter. Could He said rules were paramount, adding: “Fiscal discipline is really important.”

Reeves said it was important to control day-to-day government spending to make room for “strategic investments” in new industries and green energy technology and that she would keep tighter controls. “Colleagues will tell you Rachel knows how to say ‘no,'” she continued.

Reeves picks Washington’s Peterson Institute to launch his new economic blueprint A new business model for Britain There is a deliberate attempt to align an alleged Labor government with the Biden administration.

She claims Britain has become less relevant in Washington in recent years and in January criticized conservatives of the Biden economic model – with Energy Secretary Grant Shapps warning that US green subsidies could lead to a “dangerous” slide in protectionism. — has amplified that trend.

“What is dangerous is that it is sitting outside and this investment is going overseas,” she said, adding that the state now needs to develop technologies, build stronger supply chains and train workers for the new economy. Had to work together.

In contrast, UK Prime Minister Rishi Sunak has refused to pursue a full-fledged industrial policy, instead prioritizing key sectors including the life sciences and creative industries.

Reeves said she was “inspired” by recent speeches by Janet YellenUS Treasury Secretary, and Jake Sullivan, Biden’s national security adviser. He also highlighted state activism in countries like Germany and Australia.

The three-day trip to the US marked a pivotal moment for Reeves: an attempt to present himself internationally and domestically as a chancellor-in-waiting. At meetings in New York and Washington he repeatedly claimed that Labor would be “open for business” under Britain.

Taxes are at a 70-year high. I don’t have plans to be a big tax-raising chancellor

Reeves’ itinerary took him to the trading floor of the New York Stock Exchange – the symbolic heart of global capitalism – where he posed for photographs under the exchange’s bell, smiling through jokes about Labor’s former hard-left leader Jeremy Corbyn .

But he argued that the rise of China and shocks from Western countries like Covid and the war in Ukraine have changed the rules of the game. These “once in a generation events keep happening”, he said.

Speaking in New York ahead of his trip to Washington, Reeves told the FT: “It is changing the way globalization and trade is done.” The new economic model was “cooperative and based on building in economic security and resilience”.

Over a coffee at Hudson Yards in Manhattan, she said there were specifically British problems that had to be addressed, confirming that Labor would overhaul planning rules to allow the construction of more homes and green projects such as onshore wind .

Reeves sees the scheduled 2025 review of Britain’s “chaotic” Brexit trade deal with the EU as a key moment to iron out friction in areas such as food and recognition of professional qualifications, but not the bloc’s single market or border Denied any UK refund in fees. Federation.

Although a Labor government would achieve tighter public finances, Reeves joked that he had no plans to impose “a special FT reader tax” or to target the wealthy beyond previously announced plans. The party would end tax exemptions enjoyed by private equity executives and private schools, and tax perks secured by individuals claiming non-domiciled status.

“Taxes are at a 70-year high,” she said. “I don’t have plans to be a big tax-raising chancellor.” Reeves said the alternative was to spur economic growth and that he had no plans to equalize capital gains tax rates with income taxes or cut tax breaks on pension contributions for high earners.

Reeves said business tax reform would focus on business rates – a big issue on Britain’s high streets – and incentives to replace headline corporation tax rates, rather than encouraging companies to invest. He said tax cuts for “working people” were a priority.

The state-educated Reeves, 44, hopes to become Britain’s first female chancellor and her team on the trip is exclusively female. A former Bank of England economist, she was posted to the UK Embassy in Washington in the 2000s, where she met her future husband, Nick Joyce, a senior civil servant.

Reeves was targeted by left-wing Labor activists for being a perceived “closet Tory”, but said the hatred has subsided as Corbyn’s supporters leave the party. He said that being close to power also helps. “Labour is in an unrecognizable position from where we were three years ago.”

Reeves was shot down on social media this week for deleting a tweet in which she was pictured with a BA business class ticket on her flight to the US, claiming she was a “Champagne socialist” , But he defended the arrangement for his first long time. Tote journey as Shadow Chancellor.

The trip, which included a dinner at the Harvard Club with New York media, business and political figures, was funded by an “Old Labor benefactor”.

“I have a very busy schedule when I’m here,” she said. “I think to work at the level I want to work at, I think it’s only fair to ask a donor to fund this trip.”

While in Washington, Reeves was scheduled to meet members of Biden’s economics team at the White House and hold talks at the US Treasury and the IMF.

Reeves, a child chess prodigy, said Labor was in a strong position to win the next election, but his hopes of becoming chancellor hinged on how the party performed next year.

“Looks like we’re a rookie on move 30,” she said. “But we are playing an opponent who usually beats us.”