20 October 2022

Luke has slammed the Truss mini-budget chaos and the Government’s economic direction.

Speaking to the North East Times, Luke said:

“Long before the U-turn, it was already clear that 15 years of corporation tax cuts had failed to boost private sector investment and encourage growth.

UK private sector investment is far below average – among the lowest in the OECD.

The mini-budget simply created uncertainty for business; while the Prime Minister’s U-turn on corporation tax was welcome, the overall political instability has created a turbulent economic environment which weakens confidence.

Even with the further U-turn on the billions in borrowing, which super-charged inflation, the Government still looks set to borrow around £720 billion over the next five years.

This deficit will limit the investment our economy needs – in tackling poverty, fixing public services, levelling-up and meeting net-zero targets with good green jobs.

It will be challenging to rebuild confidence in this context.

The Government’s approach remains rooted in the long-disproven idea that economic growth automatically benefits everyone.

Growth needs to be equitable, working in the interests of our communities across the North.

Reheating failed policies of deregulation and unfunded tax cuts simply increases inequality and weakens public services.

What the North needs now is urgent injections for public services and cost of living support.

Longer-term, to unlock fair and sustained economic growth, the Government must deliver on its promise to level up: investing in digital and physical infrastructure across the North, good jobs and skills, good quality housing and devolution.

When governments actively set clear missions like this, businesses have a better idea of future growth opportunities, and confidence can be rebuilt.”