PM told his downbeat tone risks putting off investors and that his conference speech must temper realism with hope
The government’s gloomy diagnosis of the state of Britain is imperilling the private investment needed to secure economic growth, City figures are warning, amid widespread calls forThe prime minister has spent his first months in power setting out the dire inheritance his party has been left by the outgoing Conservative government, most notably aleft in the public finances this year. The forthcoming spending review is set to uncover an even bigger shortfall over the next two years.
“There is a little bit of rumbling in the City that all this doom and gloom stuff is putting off investors,” said one source familiar with the concerns. “There is a sense from the City of, ‘yes, we get that there’s an inheritance that you’ve got to deal with – we get there’s a black hole. But actually, the real economy is doing all right’.
It comes with Labour insiders also wanting and expecting to see a shift in tone at the party’s conference, which begins next Sunday. While the budget continues to be described as “very painful”, Reeves will also use it to explain how difficult choices on welfare and tax will help to achieveParty figures said that the conference came at a difficult moment, when Starmer’s “five missions” – economic growth, clean energy, violent crime, childcare and rebuilding the NHS – were taking a back seat to October’s budget.
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