The Shadow Chancellor Rachel Reeves has said that if Labour wins the next general election they will “not” be able “to turn things around straight away.”
Speaking with BBC’s Sunday with Laura Kuenssberg Reeves said that she is “under no illusions” of the scale of the challenge to public spending that she will face.
The Shadow Chancellor admitted, to be “honest that we’re not going to be able to turn things around straight away.”
Reeves said that Labour will keep their word on health and on education spending are hopeful to secure more money due to economic growth.
The Office for Budget Responsibility (OBR) has warned the current government plans “imply no real growth in public spending per person over the next five years.”
Kuenssberg asked Reeves to confirm if there will be real-terms cuts to some government spending?
She replied, “It is clear that the inheritance that a Labour government would have if we do win the next election will be the worst since the Second World War.
“And I have to be honest that we’re not going to be able to turn things around straight away. But we will get to work on all of that.”
Reeves said that Labour will reduce NHS waiting lists and there are plans for school breakfast clubs, she added, “I do know that public services need more money – that’s why we will make that initial injection.”
There are also plans for low-carbon projects that will boost growth that will provide a boost and an increase in tax revenues for the country.
Reeves insisted that she will look through government documentation to find more funding streams and that “everything in our manifesto will be fully costed and fully funded.”
Reeves added, she is “under no illusions about the scale of the inheritance and I do need to be honest that it’s going to take a while to turn around the challenges that we see.”
Business economists have been called in by Labour, the former Bank of England governor Mark Carney, Barclays boss CS Venkatakrishnan and Aviva chief executive Amanda Blanc, are on the Parties taskforce on how best to advise on the national wealth fund to bring in private investment.
Reeves said, “The idea is to leverage in private sector investment alongside a government endowment to invest in some of the jobs and industries of the future, from carbon capture and storage to green hydrogen and green steel, floating offshore wind and so much more – areas where we can be a world leader, where we can bring good jobs paying a decent wage to Britain, start to bring people’s energy bills down and also boost our economic security by boosting our domestic energy security.
“And I’m really pleased that what businesses can see is that Labour have a serious plan.
“We are determined to get in that private sector investment and they want to work with me and the Labour Party on how we can get that up and running if we are fortunate enough to win the next election.”
