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| Presenting himself as Britain’s Chancellor in waiting at Labour’s annual conference in Brighton, veteran left-winger John McDonnell set out how he would reshape the pro-business, free-market orthodoxy that has guided the country for decades |
Britainโs opposition Labour Party pledged on Monday to mobilise financial resources on a scale not seen since the post-World War Two reconstruction, promising a shorter working week and higher public spending with an eye on an early election.
Labour is hoping to use the Brexit chaos engulfing Prime Minister Boris Johnsonโs Conservative government to win control of Britainโs $2.8 trillion economy at a national election expected to be called later this year.
Presenting himself as Britainโs Chancellor in waiting at Labourโs annual conference in Brighton, veteran left-winger John McDonnell set out how he would reshape the pro-business, free-market orthodoxy that has guided the country for decades.
โWeโre mobilising financial resources on a scale not seen since the post-War reconstruction to achieve the twin goals of a sustainable future and a better today,โ he said.
The 68-year-old, once considered to be at one extreme of Britainโs political spectrum after a lifetime spent campaigning to tear up the capitalist system, is now seen by investors as a possible custodian of the worldโs fifth-largest economy.
The Labour Partyโs plans for widespread nationalisation, higher public spending, higher taxes and forcing large corporations to give workers shares, have provoked deep concern among investors and business lobby groups.
But with Johnson fighting a battle to keep his divided party together over Brexit and huge uncertainty over how and when Britain will leave the European Union โ if it ever does โ the result of a national election is hard to predict.
SHORTER WORKING WEEK
McDonnellโs most eye-catching policy announcement was a pledge to reduce the average working week to 32 hours within a decade from its current level of about 37 hours, as measured by the Office for National Statistics.
โIt will be a shorter working week with no loss of pay,โ McDonnell said to loud cheers from party members gathered in the English seaside resort.
Labour said this could be achieved by boosting the power of collective bargaining, raising holiday entitlements and ending a British opt out from European directives on how many hours people can work per week.
McDonnell repeated Labourโs promise to hold a second referendum on leaving the European Union, warning that Johnsonโs government was fuelling uncertainty and undermining democracy with its Brexit policy.
He also pledged to pump billions into the countryโs social care system, primarily to provide the elderly with free assistance for basic tasks such as cooking meals and bathing.
โNothing is more important than dignity in retirement for those who have built our country and given younger generations the world we live in today,โ McDonnell said.
Labourโs care policy is estimated to cost 6 billion pounds ($7.5 billion) in 2020/21, rising to 8 billion pounds per year by 2030/31.
The party did not explicitly explain how this policy would be funded but pointed to its manifesto at the last election which set out tax rises to pay for more funding for the wider social care system.
McDonnell has already backed new taxes on Britainโs financial services sector, and, in the 2017 election campaign, said he would raise income taxes on the highest earners.
The personal care policy addresses a sensitive subject for Britainโs ageing population โ a demographic that votes in high numbers and has the power to swing election outcomes.
In the 2017 election, a Conservative policy that was seen as unfairly penalising dementia sufferers prompted a decline in the partyโs poll rating and was cited as a major factor behind a disastrous result for then-prime minister Theresa May.
REUTERS
