Yorkshire businesses offer hope of brighter future despite recession warnings - Rachel Reeves

We are all wondering about what comes next after the tumult of the last few months.

The truth is that Britain has become really exposed to shocks because our economy has become so vulnerable.

Low growth, low living standards and decimated public services have left us vulnerable to any new pressures – whether its interest rates rising or Covid.

Decisions like scrapping our gas storage, failing to invest in renewables and poor regulation of our energy market has left us extremely exposed to rising gas prices as a result of Russia’s invasion of Ukraine.

Because of the vicious cycle of stagnation, the interest rates rise is leaving working people once again paying the price.

We urgently need stability in our economy to get us on an even keel.

That starts with fiscal responsibility, and a set of strong fiscal rules. I set Labour’s out just a couple of months after I became our party’s Shadow Chancellor last year.

As a former Bank of England economist and HBOS employee too, I know how important providing that confidence and stability is.

And we’ve got to stop flushing hard earned taxpayer money down the drain. Labour’s Office for Value for Money will root out government waste at the source.

We’ll end the culture of crony contracts, needless vanity spending like millions on a yacht, and the handing out of billions of pounds to fraudsters by failing to do the most basic, cursory checks when giving out cash – as our new Prime Minister did in his role as Chancellor.

It’s crucial we bring some security to our economy. But I want so much more than that for Yorkshire.

I know that the talents of so many working people and brilliant businesses in our region are what it takes to get our economy growing, so that we have more money flowing into it.

The last time GDP growth was sustained above 2.5 per cent was when Labour was in government, and it meant we had more money to spend on public services and more investment without having to raise working people’s taxes.

I see such fantastic work happening across Yorkshire all the time that is vital for that growth.

On a recent visit to Tower Works in Leeds, I got a tour of newly regenerated properties on the canal-side site.

The work that has gone into these new homes, making them sustainable and exciting places to live that will boost nearby businesses makes it just the sort of development we need as we look to grow our economy.

A couple of weeks ago, I also spent the day with NatWest’s CEO Alison Rose in my own constituency, learning about how the bank’s Accelerator programme is helping supercharge women-led businesses across Yorkshire.

Meeting with so many incredible, inspirational women, and seeing their creativity and problem-solving skills on show in their business models, underlined to me how important Labour’s Start-Up Review is.

With this, we’re using a panel of experts to work out how to make Britain the best place to start and grow a business. Alongside Labour’s plans to scrap business rates and replace them with a fairer system, we’ll get our high streets and our business hubs thriving.

Innovation in our region doesn’t stop with businesses, it include life sciences, digital and health – like the Innovation Pop Up at Leeds General Infirmary.

This brings together clinicians and entrepreneurs to transform the latest advances in science and technology to help solve the health and care challenges facing us.

I recently also stopped by Zenith - a leader in supplying electric vehicle fleets to companies across the UK.

Companies like these hold the key to unlocking the industries of the future here in Yorkshire and lies at the heart of Labour’s Green Prosperity Plan.

Through this plan, the next Labour government will create clean steel jobs in Rotherham and Sheffield, beef up carbon capture and storage in the Humber and invest in electric vehicle production across the North.

With cranes in the sky and shovels in the ground, Yorkshire and Britain will help lead the way.

And through our National Wealth Fund, when we invest in these major projects, the British people will have a stake in those investments – and so a return on the profits too.

With our plans, families in Yorkshire won’t just have more economic growth, but energy that costs less, independence and security of supply too.

Our economy is in a weakened state and lagging badly behind on the global stage after over a decade of Tory rule.

But even in these difficult times, I know Yorkshire and the Humber will be part of getting us firing on all cylinders again.

From our universities to our theatres and music venues; from our steel works to our wind farms, it feels like we’re only just getting started on our county’s path into the future.

With Labour’s plan to provide economic stability and to grow our economy, I know we can once again provide the brighter future that Yorkshire and Britain deserve.

Rachel Reeves is Shadow Chancellor and MP for Leeds West