Keir Starmer supports Chancellor Rachel Reeves, asserting AI can significantly boost UK productivity in the near future.
London: So, Keir Starmer is really backing Rachel Reeves, the Chancellor, even with all the economic troubles going on. He believes AI could actually double the UK’s productivity in just a few years. Sounds ambitious, right?
He praised her work, saying she’s doing a “fantastic job” despite some backlash over her recent budget. The Pound’s been struggling, and government borrowing costs are climbing, which isn’t great news.
Starmer made it clear that boosting economic growth is the top priority for his government. But with the economy kind of flatlining and Sterling dropping, things are looking a bit gloomy.
There’s been chatter about whether Reeves might get replaced, but Starmer shot that down. He’s confident in her abilities and said she has the full support of the party.
After a speech at Google’s AI campus, he emphasized how tough her job is, especially with a £20 billion gap to fill. He’s optimistic, though, saying he’s sure they’ll achieve the growth they need.
Just hours later, No10 confirmed that Reeves would stay on as Chancellor for the entire Parliament. When asked about her long-term future, the Prime Minister’s spokesman reiterated that he has full confidence in her.
The Tories are pushing back, claiming they didn’t leave a £20 billion hole and that the economy was in decent shape when Labour took over. They’re trying to capitalize on Starmer’s reluctance to fully commit to Reeves’ future.
Shadow Treasury minister Gareth Davies pointed out that Starmer’s hesitance speaks volumes. He argued that Labour promised stability but seems to be losing control, urging them to act before things worsen for families.
Meanwhile, Sterling dropped another 0.5% against the dollar, hitting lows not seen since last November. Government borrowing costs are also rising, with UK bonds seeing yields not seen since 2008.
Reeves just got back from China, and there are worries about the government meeting its fiscal rules. It looks like they might need to cut public spending instead of raising taxes.
Starmer is all in on AI and other reforms to drive growth. He doesn’t buy the idea that it’ll take a decade for AI to make a real impact. He’s been chatting with AI experts and believes productivity could double much sooner.
He’s also hinting at a more relaxed regulatory environment for AI companies, promising to clear any obstacles in their way. Plus, he wants to speed up grid connections for these companies and create AI-focused growth zones in the UK.
