British Prime Minister Keir Starmer gives an interview to the media while attending the 79th United Nations General Assembly at the United Nations Headquarters in New York, USA, September 25, 2024.
Leon Neal | Via Reuters
The UK is seeking investment from America’s biggest banks and tech giants as the country tries to inject growth into its stagnant economy.
“We now have a Labor government whose number one priority is wealth creation,” UK Prime Minister Keir Starmer told CNBC’s Andrew Ross Sorkin in an exclusive interview Thursday.
“We are a Labor Party that is proud to say we are pro-business as much as pro-worker.”
In July, Starmer became the first leader of the centre-left Labor Party to win a national election in the UK since Tony Blair – ending 14 years of Conservative rule. Since being elected, he has said his first priority is economic stability.
During his visit to New York amid the United Nations General Assembly, Starmer met with business leaders including Bank of America CEO Brian Moynihan, Citi CEO Jane Fraser, CEO of BlackRock Larry Fink, Microsoft Chairman Brad Smith and Blackstone Chairman Jonathan Gray.
this week, Blackstone pledged to invest $13 billion to build a data center in the North East of England. The investment aims to create 4,000 jobs and lead to one of the largest data centers in Europe to feed the growing demand for artificial intelligence.
“It’s a big sign of confidence,” Starmer told Sorkin of the deal. “It’s also in the North East of England, which is important to us because I want an economic boost outside of London.”
Starmer said industries in which he is particularly working to attract investment include renewable energy, artificial intelligence and life sciences. This call for investment comes as the Labor government prepares to unveil its budget plan in October, while facing a stagnant economy.
Starmer’s government, in its first days in office, posted a £22 billion ($29 billion) funding shortfall after his government carried out an audit. Former Chancellor of the Exchequer Jeremy Hunt, for the Conservative Party, in July he wrote to Simon Casethe head of Britain’s civil service, calling Labour’s claims about public finances “deeply worrying”.
Starmer has, more recently, been accused of being too negative about the UK economy, and Labour’s plans to scrap the UK’s expatriate tax regime have also come under fire.
“We will stabilize the economy,” Starmer said on Thursday. “Tougher decisions will be made on the budget.”
Earlier this week, Starmer’s plan to cut payments to offset the cost of fuel for pensioners was rejected by his own party in a token vote at Labour’s Annual Conference.
“Nobody wants to change the winter fuel allowance for retirees. But by doing that, we’re stabilizing the economy,” Starmer told Sorkin.
“We can commit to what we call a triple lock, which means they get more money year after year.” The UK’s ‘triple lock’ is where the state pension rises each year by either 2.5%, the rate of inflation or earnings growth – whichever is higher.
