Blair ‘not complacent’ on the economy
Prime Minister Tony Blair today said that if re-elected Labour could not “afford one moment of complacency” on the economy.
He said the troubles at MG Rover at Longbridge showed how fast the world changed and why “we have … to keep preparing our country for the next challenge.”
And he pledged a £250 million three-year programme to renovate or build at least one new science lab in every secondary school in the country as part of his party’s ambition to turn the UK into a burgeoning knowledge economy.
In his first set-piece keynote speech of the election campaign, Mr Blair sought to drive home the message that Labour is the party of economic competency. The Conservatives had “virtually nothing to say about the economy or about economic change”, he said.
“It is a sign of the complete transformation of British politics: that we can claim to be the party of economy, and they are the threat,” he added.
He warned that Tory “extremism” on renegotiating Britain’s position within Europe was a “real risk to the position of British industry”.
Labour and the Conservatives have continued to trade blows on the economy and their spending plans, with the Conservatives predicting that taxes would rise if Labour was returned to office.
On Wednesday, Mr Howard said of the Labour manifesto pledges: “It’s no use making all these promises now – he’s had eight years. They’ve heard it all before. Everyone knows it’s never going to happen.”
Speaking in Canary Wharf, London, Mr Blair said that to succeed in future, “economies will need to be fundamentally knowledge-based, flexible and adaptable and globally networked to a wholly new degree”.
The left would have to accept that both markets and labour market flexibility were essential, while the right needed to accept that flexible markets did not alone create wealth in the knowledge economy.
He argued that taken together Labour’s policies on economic stability, education and health – linked by a “golden thread” – would achieve the party’s goals.
“The point I want to return to is that this all hangs together; each piece is linked to the other by the same golden thread. A commitment to stability, a commitment to enterprise, a commitment to the knowledge economy and to human capital.”
“Support for markets and support for skills – for a world class NHS, word class universities, world class under-fives provision as important to enterprise and wealth creation as competitive tax rates and business incentives. They are integrally related in our programme for the future in this election.”
Mr Blair also said a Labour government would seek to develop “the most open and attractive regime for London’s financial services”, and noted the importance of getting the right regulatory framework.
“We understand the future challenge; we have the policies to meet it successfully; and that is our central claim to a third term in this election,” he said.
