How the Labour Party Wants to Change the UK Economy

The Labour Party, which won Britain’s general election on Thursday, has made it one of its missions to revitalize Britain’s economy and to provide good jobs and productivity growth all over the country. With productivity and wages stalled for the past decade and a half, it’s a tall order.

Keir Starmer, the incoming prime minister, acknowledged early Friday morning that changing the country, including the economy, would require patience and determination.

His Labour Party has said it would take a different approach to the economy from the Conservative Party that was in power for 14 years by working more closely with businesses to increase investment while protecting workers’ rights. It has said its economic agenda will be focused on providing economic security.

The party has committed to showing restraint and has chosen to bind itself to strict fiscal rules to lower debt levels that will likely rule out major changes to taxes and spending.

Labour is expected to focus on other changes and on building institutions that it hopes will unlock billions in private investment to boost productivity and improve living standards. The party’s proposals include:

• Changing Britain’s planning system to make it easier to build infrastructure and more than a million new homes. The party said it would also build new towns.

• Create a national wealth fund to invest in green energy, build gigafactories (which build batteries for electric vehicles) and revive the steel industry.

• Establish a publicly owned energy company, GB Energy, in an effort to reduce Britain’s exposure to international energy markets.