Former Google chairman and co-founder of Schmidt Futures Eric Schmidt (L) in an “in conversation” session with British Prime Minister Keir Starmer on Monday at his International Investment Summit at the Guildhall in London. Hollie Adams/EPA-EFE/Pool
Oct. 14 (UPI) — Britain’s Labor prime minister, Keir Starmer, on Monday, opened an international business investment conference he hopes will pull in billions of dollars of foreign money to kickstart Britain’s stagnant economy by pledging to take a wrecking ball to red tape.
Starmer reassured investors over a controversial new workers’ rights bill unveiled last week boosting a raft of protections from removing a two-year waiting period before unfair dismissal rules and paid paternity leave apply for new hires to outlawing zero hours contracts and fire and rehire, insisting it was “pro-growth” because greater job security and higher wages were more productive and therefore was a better growth blueprint for Britain.
Speaking at the Guildhall in the City of London, the capital’s equivalent of Wall Street, Starmer told an audience of 900 including former Google chair Eric Schmidt, Goldman Sachs CEO David Solomon and GSK CEO Emma Walmsley that the government’s “clear policy direction” had already yielded $31.3 billion of investment in clean energy from businesses and that his ministers would be announcing deals in AI, life sciences and infrastructure worth billions more.
Vowing to “upgrade to the regulatory regime to make it fit for the modern age, making Britain fit to harness all opportunities,” Starmer said too little had been done to ensure the country was keeping up with emerging industries.
“We’ve got to look at regulation where it is needlessly holding back the investment, to take our country forward. Where it is stopping us building the homes, the data centers, warehouses, grid connectors, roads, train lines, you name it then mark my words — we will get rid of it,” said Starmer.
“We will rip out the bureaucracy that blocks investment and we will make sure that every regulator in this country takes growth as seriously as everyone in this room does.”
However, he did not address concerns — which his office dismissed as “pure speculation” — that Chancellor Rachel Reeves Capital may hike capital gains and inheritance tax in her first budget in two weeks to help plug a $28.7 billion black hole in a move that could hit entrepreneurs hard, disincentivizing them from expanding or setting up new enterprises, or investing.
Starmer pitched to distinguish his administration from the chop and churn of Conservative governments, post-Brexit, saying he was single-mindedly focused on delivering on expanding the economy through a virtuous stability-growth circle.
“It’s not just that stability leads to growth — though we all recognize that. It’s also that growth leads to stability. Growth leads to a country that is better equipped to come together and get its future back. That’s why it’s always been so critical to my project,” he added.
“We are focusing on investment because the mission of growth, in this country especially, demands it. Private sector investment is the way we rebuild our country and pay our way in the world. This is a great moment to back Britain.
“This is a great moment to back England, Scotland, Northern Ireland and Wales.”
Some of the first deals announced included investment of more than $7.8 billion by U.S. tech firms ServiceNow, CyrusOne, CloudHQ and CoreWeave in data center technology in Britain, a $1.4 billion investment to help expand London Stansted Airport by Australia’s IFM Investors, and a $364 million collaboration with Eli Lilly, an innovation accelerator called “Lilly Gateway Labs.”
Starmer’s top team pulled out the stops to court the high wheelers in town with Deputy Prime Minister Angela Raynor photographed sharing a joke with BlackRock chief Larry Fink who was also pictured in deep conversation with Chancellor Reeves.
The U.S. asset manager reported Friday that the value of the assets in its portfolio had risen to more than $11.5 trillion.
Monday’s event came a day after Downing Street unveiled a new industrial strategy and advisory board led by the head of Microsft’s British operation, Clare Barclay, focusing on eight “growth-driving sectors” including creative industries, financial services, advanced manufacturing, professional services, defense, tech, life sciences and clean energy industries.
Speaking on a panel with Starmer, former Google chief Schmidt called for Britain to allow more highly skilled people to immigrate to Britain to help fuel the development of AI.
“A pro-growth agenda would start with high-skilled immigration, which is now in place here and should be expanded,” he said stressing that with large numbers of people gaining graduate degrees in AI it was critical to get them to stay in Britain or move here, particularly from Europe.
Schmidt said that with time and the correct leadership, Britain could certainly get those people, saying they “loved living here.”
The one-day summit will be topped off with a celebrity-studded gala reception at St. Paul’s Cathedral attended by King Charles III, entertainment provided by Elton John and a menu from three-star Michelin chef Clare Smyth.