Ed Davey speech to British Chambers of Commerce: Europe growth plan is only way to break the borrowing trap

EMBARGO: 2230 Wednesday 24th June

Ed Davey speech to British Chambers of Commerce: Europe growth plan is only way to break the borrowing trap

In a major speech on the economy, Liberal Democrat Leader Ed Davey will warn Andy Burnham not to “lurch to the left” but instead to focus on growth through a bold new deal on Europe – including joining the single market.

Addressing the British Chambers of Commerce Global Annual Conference, Ed Davey will argue that failing to grow the economy is the “original sin” of Keir Starmer’s government and the previous Conservative government – underpinning the cost-of-living crisis, the chaos over defence spending, and the rising welfare bill.

The Liberal Democrat Leader will set out his party’s plan to get the economy growing through a new Growth and Defence Partnership with Europe, including a customs union and membership of the single market. He will argue that “without growth, the government will never escape the trap of high borrowing costs, high debt interest payments, and no room for manoeuver.”

Ed Davey is expected to say:

[check against delivery]

On Labour and the Conservatives’ economic failure:

“It is its failure on growth that drives so much of people’s anger and frustration towards the Labour government. Just as it was their failure on growth that drove so much anger and frustration towards the Conservatives before them.

“Whether it’s the cost-of-living crisis that is causing so much pain to families across the country or the inability to find money for defence at a time when national security is so critical, the rising welfare bill or the scandal of one million young people not in work, education or training, the crisis underpinning them all is anaemic economic growth.

“The original sin of this government, and the last government, is its failure on growth.”

On Andy Burnham:

“And if the next Prime Minister is going to solve those other problems, they must start by getting the economy growing again – and fast.

“It would be a terrible mistake for the new Prime Minister to think that the problem with Keir Starmer’s government is that it wasn’t left-wing enough. Don’t lurch to the left. That’s a mistake the country can’t afford.

On the bond markets and government borrowing costs:

“Without growth, the government will never escape the trap of high borrowing costs, high debt interest payments, and no room for manoeuver.

“Whoever the next Chancellor is will have to face up to the reality that we spend £110 billion every year, just paying the interest on our national debt. That’s £1 of every £12 the government raises in revenue, gone.

“And the only way to bring down those high borrowing costs is to reassure investors and the markets that Britain has a real plan to grow our economy and get the public finances under control. A plan that both the Conservatives and Labour have disastrously failed to deliver.”

On a Growth and Defence Partnership with the EU:

“Our party’s plan for a new Growth and Defence Partnership with the EU would make Britain richer, safer, and stronger, with a new Customs Union, and also – crucially – taking Britain back into the Single Market.

“Tearing down the barriers to trade. Ending the mountains of paperwork. Cutting costs for businesses. Giving our young people the chance to study and work, live and love anywhere in the EU.

“Undoing the damage of the Johnson-Farage Brexit deal that has held our economy back for so long. Giving British businesses the certainty they need to invest, to hire, and to grow.

“And giving Britain’s public finances a growth dividend – a new fund worth tens of billions of pounds, to rebuild the public finances, cut the cost of living, cut the cost of business, fix the NHS and strengthen our Armed Forces.”

ENDS