Building a Stronger and Fairer Economy

For too long, the UK’s economy was defined by stagnant growth and flatlining living standards. The Conservatives oversaw the only Parliament in modern history where people were worse off at the end than they were at the start. But since being elected, this Labour Government has focused on tackling the country’s economic challenges, whilst supporting people with the cost-of-living and investing in public services. 

Our economic plan focuses on building an economy that is stronger, fairer and more resilient. We are investing in the NHS, education and new homes. By raising the National Minimum Wage we are delivering pay rises of up to £1,500 for full-time workers and we are easing cost pressures by taking £150 off energy bills, freezing rail fares, capping prescription charges and boosting pensions by up to £575. We are also saving parents up to £8,000 through expanded childcare and helping to lift 450,000 children out of poverty through our Child Poverty Strategy. This means lifting over 6,000 children out of poverty in my constituency. 

The data proves our plan is working. At the start of the year, the UK has been the fastest-growing economy in the G7, defying expectations. Inflation has fallen to 2.8%, and six consecutive interest rate cuts are saving typical households over £1,500 a year. Real wages rose more in our first year than during a decade of Tory rule, and we have secured landmark trade agreements with the EU, India, and most recently, the Gulf states.

Conflict in the Middle East and the closure of the Straits of Hormuz bring fresh challenges to the economy. However, the Chancellor’s work to ensure stable economic foundations leaves us better prepared. To support families through this turbulence, the Chancellor has launched the 'Great British Summer Savings' scheme. Measures include free bus travel for children aged 5-15 and cutting VAT on children’s meals and tickets for cinemas and theme parks. 

Long-term growth will be driven by the industries of the future like green technology, AI, and life sciences - where East London will play a crucial role. The Barts Health Life Sciences Cluster in Whitechapel recently secured £800 million in private investment. This will create local jobs and boost the economy, whilst enabling healthcare innovation, helping to tackle health inequalities. 

Structural change takes time, but the economic foundations for a stronger Britain are being laid, not least here in East London. By combining immediate cost-of-living support with long-term investment in our communities, this Labour Government is delivering the economic stability, growth, and fairness that our community needs and deserves.

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Rushanara Ali

Labour Member of Parliament for Bethnal Green and Stepney