Wes Streeting says Labour are 'pro-business and pro-worker', as Rachel Reeves hints at National Insurance hike
14 October 2024, 19:05
Wes Streeting has vowed that Labour can be both "pro-business and pro-worker", as Labour tries to court private investment while protecting employment rights.
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The Health Secretary told LBC's Tonight with Andrew Marr that supporting both businesses and workers was the key to securing Britain's economic growth.
Speaking after an investment summit that Labour said secured £63 billion of private investment and 38,000 new jobs, Mr Streeting pointed to the recently resolved controversy with P&O as an example of Labour's double success.
"Last week, we introduced legislation into parliament to ban fire and rehire, and the following week, we secured a £1 billion pound investment from P&O's parent company" [Dubai-based DP World], Mr Streeting said.
He added: "That shows not only can you be pro business and pro worker, it shows that being pro-business and pro-worker is the roots of being pro-growth, and that's what we're going to do."
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The controversy came after Transport Secretary Louise Haigh called the company a "rogue operator" following its treatment of workers in 2022, when the company fired 800 British employees and replaced them with cheaper overseas staff.
DP World said it was pulling out of the business summit and threatened to withdraw its £1 billion investment in the London Gateway container port.
The investment was later reinstated after frantic negotiations with ministers and diplomats.
Keir Starmer said Ms Haigh's comments were "not the view of the government.”
Last week the government introduced plans to stop businesses conducting the "unscrupulous" fire and rehire practice.
Mr Streeting said that ministers would be "watching like a hawk to make sure people follow the letter and the spirit of the law".
He added that "part of the mature relationship with business and government is being able to challenge each other and challenge practices, whether that's us challenging some business practices, or business challenging the regulatory environment and things like planning rules or... the investor environment."
Mr Streeting's comments come as Rachel Reeves plots her first Budget as Chancellor on October 30.
Speaking at the summit on Monday, she pledged to end "years of instability" for businesses.
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The Chancellor said: "Today, at this summit, we are sending a message for all to hear. We are ending years of instability and uncertainty. We are bringing investment and jobs back to this country. Britain is open for business once again.
"I understand that for every business, stability is the foundation of success. In the next fortnight, I will be finalising my first Budget as Chancellor of the Exchequer and the situation that we have inherited means that we face difficult choices.
"The first step that we must take to grow our economy is to restore fiscal and economic stability, because balancing the books by ensuring that we do not borrow for day-to-day spending is not anti-investment. In fact it is the only way to ensure that both Government and business can invest with confidence."
She said the government would cap corporation tax at 25% for the rest of the Parliament and set out a roadmap on business taxation to provide "certainty" for investors.
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But Ms Reeves also hinted at a National Insurance hike for businesses.
The Chancellor said Labour's election promise not to increase National Insurance for "working people" was in relation to employees, rather than the amount paid by employers.
