It was touted as a “big moment” for the Starmer administration and upon arriving at Labour's International Investment Summit it was clear how seriously the government was taking it
The venue was the spectacular 15th century Guildhall in the heart of the City of London, where 200 leading executives gathered with the Prime Minister, Cabinet, First Ministers and Mayors of the UK to talk about investing in the UK.
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Adjoa Andoh, who plays Lady Danbury in the hugely successful Netflix series Bridgertona, was the host of the day, and the one-day summit ended with a grand reception at St. Peter's Cathedral. Paul hosted by King Charles, a three-Michelin-star meal and a performance by Sir Elton John.
Sir Keir Starmer described the summit as a key moment in revitalizing the UK's global position in the world, promising investors he would “do everything I can to boost growth”.
He promised investors an end to the “culture of sharing and change” with a new industrial strategy “with a mission mindset that thinks for years” and pledged to “smash the bureaucracy blocking investment” to make sure UK regulators are properly prepared for growth.
“We will make sure that every regulator in this country… takes economic growth as seriously as this room does,” he said.
After a difficult first 100 days beset by infighting in the Prime Minister's Downing Street and arguments over freebies, Starmer's team wanted the Labor government's 101st day in office to be a moment to reset and return to the Prime Minister's first mission – economic growth.
And while Sir Keir made no specific reference to his first 100 days in his speech to investors, it was a nod to the frustration I was told he had felt in recent weeks as he tried to shape his new government.
He said: “We know – as every leader knows – that these early weeks and months are precious,
“And no matter how many people advise you to ignore it, you must run towards the fire to put it out, to prevent it from spreading any further. So we will fix our public services. We will stabilize our economy and we will do it quickly. “
Cutting through bureaucracy to trigger shock-and-awe investments.
This is not necessarily something you would expect from the government. Eric Schmidt, the former Google CEO who joined Keir Starmer in a post-Prime Minister's speech, told the assembled business executives that he was “shocked to hear that Labor was in favor of growth”, adding that “a lot money that will flow into the country” if the government manages to deal with regulations.
But he also warned the Prime Minister he would not be able to meet his 2030 clean energy goal without tackling regulation.
No 10 insiders tell me the task in the coming months will be to “reprogram” every regulator – digital, water, energy, competition – for the next decade, with one person telling me that “cutting red tape is about making sure the UK regime doesn't “look too rugged, especially compared to our size and influence on global markets.”
One Whitehall official gives the example of the Office of Competition and Markets investigating Amazon's link with artificial intelligence company Anthropic, even though the latter had no operations in the UK, which only gave the UK the appearance of being anti-tech (the investigation was dropped).
For Treasury Department specialists, the £60 billion in new, ready-to-use projects announced during the investment summit is a significant benefit after several difficult weeks.
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“We have exceeded expectations,” says one government official, bluntly noting that last year's Conservative government investment summit raised £28 billion.
“Politics is like a seesaw. When you're down you can't do anything right, but when you're up you can't do anything wrong. That was also the concept. Holding a summit in the first 100 days of government where we were banging the drum for Britain.”
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There will be questions about how Labor can reconcile its growth agenda with Sir Keir's range of new workers' rights – something the Prime Minister addressed directly in his speech, telling listeners that “workers enjoying greater job security and higher wages is a better a growth model for this country.”
There are also questions about whether the big sale of 200 chief executives, representing a staggering £40 trillion in assets, will be disrupted when the budget is passed on October 30.
Chancellor Rachel Reeves has insisted it will be a growth budget, but expectations are growing that Labor will raise billions of pounds in business tax by including employer pension contributions into the national insurance system.
According to research by the Resolution Foundation think tank, the Chancellor could raise £18 billion a year by the end of 2030 if she imposes a flat rate of 13.8% on pension contributions.
Chancellor Rachel Reeves. Photo: PA
One of the representatives of the Ministry of Treasury stated that it is not true that investors are “trapped in a circle of caring only about the budget. They want a government with a sense of stability and purpose. This applies to taxes and spending, but regulations and barriers are also important.” What matters is planning reforms, a stable government and a large majority that the Labor Party has.”
The long-prepared investment summit has taken on new meaning for Starmer's government seeking a fresh start after a difficult first 100 days.
The ministers will arrive at St. Peter's Church this evening. Paweł with the feeling that they finally have something to celebrate.
The next big test will be the budget later this month, but the much bigger task is turning the promises made on stage into a framework that unlocks billions more than the business advance promised today.
