Sir Keir Starmer, the leader of the Labour Party, has pledged that a Labour government would be the most pro-business in British history, as he addressed business leaders at the World Economic Forum in Davos. He emphasised that the UK would be 'open for business' under Labour, particularly in green industries, aiming to reverse a decline in foreign investment.
Speaking alongside shadow chancellor Rachel Reeves, Starmer criticised the Conservative government for allowing foreign direct investment (FDI) to fall sharply. Labour cited United Nations figures showing the UK's share of global FDI dropped from 8% between 1997 and 2010 to 4% between 2010 and 2021, with a record low of 1.7% in 2021.
Starmer's attendance marks a significant shift from his predecessor Jeremy Corbyn, who boycotted the Davos meeting, calling it a 'billionaires' jamboree'. Starmer and Reeves have actively courted business, including meetings with the financial sector in Canary Wharf and promises to improve trade relations with the EU.
Reeves stated that Labour would 'work in partnership with business' to boost investment and position the UK as a world leader in the climate transition. The party has sought to burnish its pro-business credentials under Starmer's leadership.
The government was represented at Davos by Business Secretary Grant Shapps and International Trade Secretary Kemi Badenoch. Shapps tweeted about his vision to scale up Britain as the best place to start and grow a business, citing a PwC survey ranking the UK third most important investment destination after the US and China.
A Treasury spokesperson highlighted support for business investment, including a permanent £1m Annual Investment Allowance from April and a £13.6bn package of business rates support. The government argues that these measures demonstrate its commitment to economic growth.
