Keir Starmer gathered his top ministers for a mammoth Cabinet ‘away day’ after the Bank of England dealt a blow to the government’s bid to fire up economic growth
Keir Starmer has warned ministers they can either be “the disrupters or the disrupted” as plans to fix Britain risk being derailed by global events.
At a marathon Cabinet session, the Prime Minister said the Government must ramp up the pace of change as insecurity around the world threatens ordinary Brits. And he took a swipe at Nigel Farage and Kemi Badenoch, saying right-wing populists pretend to be on the side of working people but only offer grievances.
“My reflection is that while we are working away the world is speeding up,” the PM said. “We can either be the disrupters or the disrupted.”
The PM gathered his top team at lavish Lancaster House in London for six hours of talks after the Bank of England dealt a blow to his bid to fire up economic growth.
The Bank reduced interest rates to 4.5% on Thursday, offering a boost to mortgage-holders. But it also warned households to brace themselves for higher inflation, risking a fresh squeeze on living standards.
In what has been described as a “wake-up call” for Chancellor Rachel Reeves, the Bank also halved growth forecasts for this year from 1.5 per cent to 0.75 per cent.
The day began with a two-hour political Cabinet – without civil servants present – where ministers were able to discuss political issues such as Labour’s slump in the polls and the upcoming local elections. Mr Starmer told ministers that global insecurity is driving insecurity at home for working families like the one that he grew up in.
He pointed to the economy and migration as the key challenges after days of uncertainty triggered by Donald Trump’s threats of a trade war. Tory failures to raise living standards, improve public services and control immigration had fuelled this insecurity, he said, and warned the Government must deliver on its promises.
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Experts have warned that the Chancellor may be forced to announce public spending cuts when the Office for Budget Responsibility publishes its latest figures next month. But Ms Reeves recently told the Mirror that she stood by her vow that there would be “no return to austerity”, leaving her with little room for manoeuvre unless she gets the economy firing.
Ministers have been told they must justify new ideas based on the potential for cranking up growth. Foreign Secretary David Lammy has ordered diplomats to channel their inner Alan Sugar as part of the push for growth.
The Foreign Secretary is understood to have told his team to think like The Apprentice star in a top-level meeting at the Foreign Office last week.
He said: “Driving economic growth is this Government’s number one mission, to deliver more jobs and more money in people’s pockets. That is why I am asking diplomats to channel their Alan Sugar and bang the drum for British business across the world.”
