Sir Keir Starmer announces 'British Recovery Bond' to reinvigorate the economy

Sir Keir Starmer has announced a “British recovery bond” to reinvigorate the economy.

The Labour leader used a keynote speech to pledge to lead a "moral crusade" to combat inequality and claimed the recovery bonds would give savers a stake in the UK’s future.

Calling for a "new chapter" in the country's history, Sir Keir suggested using the savings people had built up during the pandemic could help address the nation’s “fragilities".

He said: "If I were prime minister, I would introduce a new British recovery bond.

"This could raise billions to invest in local communities, jobs and businesses. It could help build the infrastructure of the future – investing in science, skills, technology and British manufacturing.

"It would also provide security for savers and give millions of people a proper stake in Britain's future."

The policy would be similar to the NS&I premium bonds, but Labour say the money would instead go directly to the coronavirus recovery, potentially raising "billions" of pounds.

Sir Keir said: "We can go back to the same insecure and unequal economy that's been so cruelly exposed by the virus, or we can seize the moment, and go forward to a future that's going to look utterly unlike the past.

“Our moral crusade now is to address the inequalities and injustices that this crisis has so brutally exposed – and to build a better, more secure future."

The Labour leader also announced plans to offer 100,000 start-up loans.

He said: "If we're honest, for too long Labour has failed to realise that the only way to deliver social justice and equality is through a strong partnership with business. Under my leadership, that mindset will change.

"A new partnership with business – one where we have high expectations of business and where business can have high expectations of Labour – is pivotal to my leadership and to my vision of the future.

"That's why, if I was prime minister, I'd back a new generation of British entrepreneurs by providing start-up loans for 100,000 new businesses across every region of the UK."

Sir Keir labelled next month's Budget as a "fork in the road". He pledged that a Labour government would retain the £20-a-week uplift in Universal Credit, as well as ending the "insult" of a pay freeze for key workers.

The Holborn MP also insisted his party would provide local authorities with the necessary funding to prevent huge council tax rises, and he promised to extend business rate relief and the VAT cut for hospitality and leisure.

Conservative Party co-chairman Amanda Milling said: "Keir Starmer said this speech would deliver his big vision for the future of the country, a 'policy blitz' with ideas to rival Beveridge and relaunch his failing leadership.

"But there are only two new policies – one taken from the Conservatives and the other from the CPS, the think tank co-founded by Margaret Thatcher.

"After ten months of Keir Starmer, all Labour has to offer is others' ideas, empty rhetoric and calling for things the government is already doing.

"The Conservatives are getting on with the job and rolling out the vaccine and delivering on our commitments to the British people."

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