The Government cannot rule out borrowing to invest in the region’s economy

The new Government is understandably cautious about making spending pledges until it gets to grips with the financial situation left behind by the Tories.

Labour has to be extra careful after it lost the public’s trust on the economy back in 2010. That infamous note left behind at the Treasury saying “there is no money” left by Liam Byrne continues to haunt the party.

However, caution on public spending would hamper the Government’s goal of delivering economic growth. Labour will need to be bold without being reckless.

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And public sentiment is very much for bold action on the economy, as shown by the new report from the think tank IPPR.

Chancellor of the Exchequer Rachel Reeves and Energy Security and Net Zero Secretary Ed Miliband during a meeting of the National Wealth Fund Taskforce in 11 Downing Street. PIC: Justin Tallis/PA WireChancellor of the Exchequer Rachel Reeves and Energy Security and Net Zero Secretary Ed Miliband during a meeting of the National Wealth Fund Taskforce in 11 Downing Street. PIC: Justin Tallis/PA Wire
Chancellor of the Exchequer Rachel Reeves and Energy Security and Net Zero Secretary Ed Miliband during a meeting of the National Wealth Fund Taskforce in 11 Downing Street. PIC: Justin Tallis/PA Wire

Almost all constituencies that elected Labour MPs have a majority or plurality of people who would support extra government borrowing to invest in the economy and public services.

No one wants to see a Liz Truss style budget that does away with not only Treasury orthodoxy but loses touch with economic reality.

Uncosted spending would see markets lose confidence in the UK very quickly. But markets would be more than willing to welcome investment in much needed infrastructure and services that would provide a return on said investment.

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Transport is the simplest example of how Government investment could help grow the economy, making the nation’s population more mobile and giving businesses more confidence to invest in towns and cities.

That is why it is so important that the West Yorkshire Mass Transit network is delivered.

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