NEWS
21/05/2016 00:01 BST | Updated 21/05/2017 06:12 BST

Jeremy Corbyn To Call For 'New Economics' At Labour Conference

Jeremy Corbyn will put big business on notice with a warning that Labour will "always seek to distribute the rewards of growth more fairly".

Shopfloor workers, entrepreneurs and technicians should be put in the "driving seat", the Labour leader will say as he calls for a "new economics".

Labour must take "bold and ambitious" action to build a "fairer" economy, he will tell the party's State of the Economy conference in central London.

"Building an economy for the future requires bold ambition. A new economics," Mr Corbyn will say.

"We want to see a break with the failed economic orthodoxy that has gripped policy makers for a generation. And set out a clear vision for a Labour government that will create an economy that works for all, not just the few.

"We want to see a genuinely mixed economy of public and social enterprise, alongside a private sector with a long-term private business commitment, that will provide the decent pay, jobs, housing, schools, health and social care of the future.

"Labour will always seek to distribute the rewards of growth more fairly. But to deliver that growth demands real change in the way the economy is run.

"Only an economy that is run for all wealth creators - the technicians, entrepreneurs, designers, shopfloor workers, and the self-employed - and that puts them in the driving seat is going to deliver prosperity for all."

Economists Ha-Joon Chang and Jonathan Portes along with Adam Marshall, acting director general of the British Chambers of Commerce, and Unite general secretary Len McCluskey are all set to attend the conference.

Labour wants to see the "re-industrialisation of Britain for the digital age" through public backing driven by a National Investment Bank, Mr Corbyn will say.

"The new economics is also about economic justice," he will add.

"People expect companies that trade in this country, and people who live in this country, to pay their tax in this country. It funds our public services.

"Aggressive tax avoidance and tax evasion are an attack on the NHS, on schools, our care for elderly and disabled people and the social security system that prevents poverty, homelessness and destitution.

"We believe that economic justice and economic credibility must go hand-in-hand, which is why all our plans are underpinned by Labour's fiscal credibility rule agreed following discussions with the world-leading economists on our economic advisory council.

"Our rule makes clear that we will ensure solid public finances, while rejecting the politically motivated austerity that is strangling investment and choking prosperity.

"We have the opportunity to build a fairer, more equal, more prosperous economy. We must be bold and ambitious in our approach."

John McDonnell will revive Labour's plans for rent controls and urge councils to follow the lead of areas like Manchester to offer cheap, local authority-backed mortgages.

He will say: "Those of us, particularly young people, who are unable to get onto the housing ladder and then at the mercy of an unforgiving, unrestrained housing market.

"Other urban areas are suffering from skyrocketing rents.

"We'll give local authorities the powers to impose local rent controls where these are needed.

"But we have to also meet the aspirations of people to own their own home.

"We are also looking at how we can reverse the freefall decline in home-ownership amongst young people.

"So Labour would make it a mission to ensure families and young people on ordinary incomes aren't locked out of home-ownership as they are under the Tories.

"So I want to see local authorities following the example of Manchester, Warrington and Sandwell, offering cheap, local authority-backed mortgages to first-time buyers in particular.

"With too many first-time buyers excluded from the housing market by high-street banks, we'll be looking at ways to securely expand local authority mortgage lending."

The shadow chancellor will also use the conference to announce plans for a mayors economic forum to allow the elected local leaders to share ideas along with a new economic and innovation forum to bring together businesses, unions and government.

He will say: "We must overcome the arrogance and isolation of government. Civil servants do not always know best. Nor do politicians.

"Too many governments in the past have believed that they do.

"But it should be fundamental to a genuinely democratic approach to economic policy that governments are there to bring people together, to facilitate discussion and to listen.

"Not to impose, but to seek consensus.

"When we return to government, I'll be looking to set up an economic and innovation forum which will provide a space where representatives of businesses, unions, and wider civil society can come together with government at a national level.

"We'll create a partnership in policymaking.

"We think we are far more effective when we work together."