No more time to waste to grow economy in 2023 after Tory chaos: Rachel Reeves

While it has been made worse by Russia’s barbaric invasion of Ukraine, this time last year we were already expecting energy prices to soar – the result of over decade of mismanagement of our energy sector, leaving us exposed and vulnerable to the shock the war has brought.

That’s why, as far back as January, Labour proposed a proper windfall tax on the massive profits of energy giants to freeze households bills and ease the pressure on families.

It’s disappointing to end the year and have the government still not bring in such a tax properly, instead leaving working people to foot the bill for 12 years of economic failure.

And it’s clear under the Tories prices have been rising for everyone.

From energy bills to the weekly food shop; from mortgage rates now permanently higher for years to come because of the disastrous mini-Budget, to everyday essentials and petrol – it truly has been a year where prices have soared and living standards have plummeted.

I know the question people will be asking themselves at the next election is this – do I and my family feel better off under the Tories? The answer will be no.

After over a decade of Conservative government, it feels like we’re simply lurching from crisis to crisis – simply surviving, when Britain has such great potential to thrive.

If I was Chancellor right now, I’d be looking ahead to 2023 with a real plan not just to stabilise the economy and make it stronger, but to propel it forward too so our country has a better future.

In the face of this cost of living crisis, and after an economic crash that has shaken our country, we must put economic competency and financial responsibility first.

As a former Bank of England economist I know how important providing that stability is.

As the party of sound money, Labour’s fiscal rules and our Office for Value for Money to root out waste from the source would help get us on an even keel.

There are fairer choices we would be making too, as families across Yorkshire and Britain are forced to pay the price of this economic disarray.

Choices like a proper windfall tax on energy giants to foot the bill of the cost of living crisis; or scrapping the antiquated non-dom tax loophole – so that people who live here, pay their taxes here – and spending that money on one of the biggest expansions of the NHS workforce in British history.

We would also stop giving private schools tax breaks, in a move that could bring in an extra £1.7 billion a year for our state schools – allowing everyone access to a better education.

But if we want to get out of this doom loop of high taxes, high prices and low living standards, we mustn’t waste another second to get our economy growing.

The more we grow our economy and get money flowing back through it, the more we have to spend on the things that we need to.

To do that next year, a Labour government would be moving as quickly as possible with a nationwide Warm Homes Plan, starting the work to insulate 19 million homes across our country.

That could save families in Yorkshire £1,000 off their energy bills, not just in 2023, but for every year in the future too.

We can supercharge efforts to get to clean power by 2030, Labour’s target, by investing in renewables, wind power, new nuclear and onshore and offshore wind – industries that will help us lead the pack on the global stage, increase our energy security, lower bills, create jobs across Yorkshire and grow our economy.

And with an active and strong partnership with businesses from Scarborough to Sheffield, Labour would be using 2023 to start making Britain the best place to start and grow a business.

These are just some of the ways that Labour would be using 2023 to get money back into Britain’s economy and to have us lead on the global stage again.

I know that this has been a year of tumult in Westminster and across Britain. I found myself facing four Chancellors and three fiscal events in the space of our months – something I should hope the Conservatives do not want to repeat (though you can never quite tell).

So as we head into 2023 and hope for a different year, I know that if we stabilise our economy and get it growing, we can get Britain on to a more prosperous path.

With a partnership not just with our businesses, but our local communities across Yorkshire and our country too, Labour will carve out that better future for Britain.

A happy new year to you and your family.

Rachel Reeves is Shadow Chancellor and Leeds West MP.