Labour is making Britain more competitive
Labour is making Britain more competitive
Jonathan ReynoldsSat, August 15, 2026 at 5:00 PM UTC
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We’re showing that the days of can-kicking in Westminster are over - Temilade Adelaja/PA Wire
I’m serious about reindustrialising this nation and fulfilling the Prime Minister’s pledge to bring good growth to every postcode.
But reindustrialisation doesn’t mean reopening coal mines and dusting off spinning jennies. It means playing to our strengths – in areas such as advanced manufacturing, defence, and clean energy. It means making the cost of doing business cheaper.
We’ve made progress over the last two years. Take a look at the growth rates of other European G7 economies over that time – Germany, France, Italy. The UK has outperformed the pack.
GDP has increased every single quarter since Labour has been in power. This isn’t growth fuelled by immigration – as favoured by the Tories. Today, GDP per head is up but immigration is down.
And while there’s still more to do to improve the business environment, our Industrial Strategy is making the UK more competitive. We have chalked up some big wins. We’re investing in the first of many new small-modular nuclear reactors, bringing us closer to energy independence. We’ve secured £3bn in investment for life sciences and cut clinical-trial waiting times.
We’re ploughing more investment in our car industry than at any other time in the post-war era. And we’ve worked hard to get international players like Universal investing in the UK. Their new resort in Bedfordshire will create 28,000 new jobs alone and generate roughly £50bn in benefits for our economy by 2055.
We’re going all in on the technologies of tomorrow, too. Five new AI growth zones so British businesses can compete in the modern global economy. And without jeopardising jobs – evidence shows that companies adopting AI employ more people, not fewer.
Combining forces with our great Metro Mayors and city regions, we’ve secured hydrogen investment in South Yorkshire, unlocked a new offshore wind hub in Port Talbot, and strengthened defence supply chains in Belfast.
But we won’t rest on our laurels. One of our most significant policies to back business launches this Autumn – with the British Industrial Competitiveness Scheme opening for applications. It will slash electricity costs for over 10,000 British manufacturers with backdated payments providing relief from current energy price spikes.
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Britain’s businesses are subject to the highest electricity prices in the developed world - Darren Staples/WPA Pool
We are being equally ambitious for our SMEs by delivering the most comprehensive package of reforms in a generation – tackling late payments, increasing access to finance and shaking up our business rates system to support pubs and high streets.
I want our trade strategy to support reindustrialisation as well. While other countries turn inward, the UK remains open and outward looking because I want to see more products made in the UK being sold around the globe. So, I’ll work to reduce trade friction with our biggest trading market – the EU.
We’ve got six successful trade deals, and next I’ll be going after more sector-specific agreements to back these up. That means more mutual recognition of qualifications, better access with digital trade deals and procurement opportunities for British businesses. I’m not interested in refighting Brexit battles. I’m interested in making the UK the best-connected market in the world.
As a result of our deal with India, for example, Airbus and Rolls-Royce have secured contracts worth around £5bn, sustaining hundreds of jobs in Filton, Broughton and Derby.
This is important because we need Britain’s wealth makers and job creators taking on more staff, at every level. Returning as Business Secretary, a key focus of mine is equipping more young people with the tools they need to succeed in the jobs of the future. My new department will be working closely with Alan Milburn on this – understanding why young people are falling out of work or education before their careers even begin and tackling that issue head-on. As a statement of intent, from September, our Technical Excellence Colleges will begin delivering a brand-new offer shaped around the needs of local employers.
That’s what our Industrial Strategy is all about. But we can’t solve this issue without business. We must continue working in lockstep with the private sector, with mayors, local government and trade unions to make this happen.
The Prime Minister has rightly said that it’s time to do things differently. In establishing No10 North and announcing the biggest transfer of power out of Whitehall in a generation, we’re showing that the days of can-kicking in Westminster are over. We are running towards some of the most difficult problems facing the country. And I am asking businesses to join us in this endeavour. In return, I will do all I can to help you drive growth and create opportunities in every postcode of the land.
Jonathan Reynolds is Secretary of State for Business and Trade
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Source: “AOL Money”
