Subject: "Not All That Glitters Can Be Sold ... The Labour Party In Liverpool ...

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                                                                                   Saturday 14th October 2023
Hi Friend,

The Labour Party was in Liverpool this week. "Let's Get Britain's Future Back" the slogan. The Conservative Party was in Manchester last week, "Let's Get Britain's History Behind Us" the objective. For the Labour Party, it was the best of times. For the Tories, it was the worst of times. 

News that NHS waiting lists had topped 8 million was bad, but then came news waiting lists would have to be added to prison occupation. Judges were warned sentencing should be delayed, the prison cells were full. But where to put them. Criminals could be handcuffed to trolleys outside A&E or held over in prison delivery vehicles, or put on a flight to Rwanda, the home office favourite option, perhaps.

Rishi Sunak was forced to admit the list of project for infrastructure in the North was "illusory". Although the word used was "illustrative", I guess we knew what he meant. OK, the metro link to Manchester airport was on the list, even though it was completed over seven years ago. A simple mistake by a few SPADs, late at night, over drinks and pizza in the Midland hotel.

Chancellor Jeremy Hunt was in cautious mode. Tens of billions of pounds of higher debt interest payments and a slowing economy suggest the UK's fiscal picture is far worse than it was in the spring. The growth outlook has worsened, ruling out the possibility of tax cuts this Autumn. No excitement ahead of the Autumn statement. So what is the point of an Autumn statement at all?

"Make UK" has urged the Chancellor to drop the concept of an Autumn statement altogether, there really is nothing to add. If the best policy offer from the Prime Minister is a ban on smoking and maths to eighteen, then what can a beleaguered Chancellor offer, in a week in which the IMF downgrades forecasts for growth.

So it was left to Prime Minister in waiting, Sir Kier Starmer to fill the void. Starmer's conference speech was considered to be one of his best yet. It didn't get off to a great start. When he walked on stage, a protester sprang upon him with a handful of glitter before being tackled to the ground by security. "If he thinks that bothers me, he doesn't know me," Starmer quipped. John Prescott would have thumped the intruder. Starmer didn't look bothered. He just took off his sparkly jacket, rolled up his sleeves and carried on. His audience loved him for it.

According to Freddie Hawyard in the New Statesman, his main theme was rebuilding the future through infrastructure investment, planning reform and 1.5 million new homes. Starmer wants to build another generation of new towns, like Clement Attlee before him. He spoke of investment not as a burden on the national debt but as an opportunity to save money, crowd in private finance, create jobs and growth.

"Government must steer the ship on industrial policy. That's a crucial part of any plan for growth," Starmer insisted, he wanted "not state control, not pure free markets, but a genuine partnership between business and government."

It was a speech devoid of detail but offered direction. ‘Never interfere with an enemy while he’s in the process of destroying himself.’ the guideline. Starmer was keen to avoid giving the Tories too much ammunition. Tony Blair had carefully avoided detail in the run-up to the election of 1997. So careful was he, not to go into any detail in that campaign, that Roy Jenkins famously described Tony Blair as being "like a man carrying a Ming vase across a highly polished floor".

"Sir Kier Starmer", according to Philip Johnston in The Telegraph, "is the latest Labour leader tip-toeing towards an election, terrified he will drop the priceless piece of porcelain". "His windy speech at the party conference, was replete with hackneyed generalizations and low on specifics."

The Labour leader said "he wanted the nation to "walk towards a decade of national renewal and face down the age of insecurity". "Contrasting 13 years of things can only get better, with 13 years of things have only got worse".  

So what to make of it all? Rishi Sunak's rating has fallen to a record low since the Conservative Party conference, according to polling for The Times. The YouGuv survey found that only 20 per cent of voters believed Sunak would make the best Prime Minister.

Sir Keir Starmer's rating fell by two points, to 32 per cent. Highlighting the uncertainty among voters a year before the possible date of the next election. 43 per cent of voters said they were not sure who would make the best leader.

Matt Hancock in The Times today reports "In our monthly Times Radio focus group we asked a group of undecided voters what they made of it all. Sunak was seen as "quietly confident" "wealthy", "unbelievable", "untrustworthy" and "very, very, very rich". Starmer, by contrast, was "boring", "hopeless', "drab", "rubbish", "wet", "uninspiring" and "vanilla".

It just goes to show, "not all that glitters can be sold." Even so, the latest YouGov/Times voting intention poll, post conference, shows the Conservatives on 24% to Labour's 47% up two points. It promises to be an interesting year ahead.
Ready To Serve, Ready To Lead, Ready To Rebuild, Ready For Action ...

Well we didn't see that coming. Rachel Reeves delivered what many consider to be her best speech yet. 

According to Freddie Hayward in the New Statesman, "This was the best speech of her career so far. She spoke with seriousness and conviction. OK, there was little new substantive policy. A commitment to crowding-in private investment, a reduction in the government's use of consultants, a new team to claw back the money fraudsters stole during the pandemic. Restrictions on ministers use of private planes. A few million here or there is not going to change the purpose of the state. But it still matters politically."

Reeves's key objective is reassuring voters that Labour won't crash the economy, but the Tories will. "The biggest risk to Britain's economy, is five more years of the Conservative party."

Richard Partington writing in the Guadian, distilled five key takeaways from the speech.

1 Labour is open for business ...
2 Reeves is opposed to tax increases ...
3 Labour Backs Spending Discipline ...
4 Business Investment is a Labour Priority ...
5 Starmer wants to build not block ...

And business was there in support or out of curiosity. Exhibition stands for Google, Ineos and Specsavers; slick videos for Amazon and Uber, fringe events sponsored by Deliveroo and Goldman Sachs. The parliamentary lounge was sponsored by Lloyds Bank.

Make UK were impressed. "I'm very impressed by Rachel Reeves. She seems extremely competent" says Stephen Phipson, the chief executive of the manufacturing trade group Make UK. "What we've seen from the Labour party is a really strong commitment to making things in this country. We never saw that last week at the Tory conference. The whole thing about stability ... it was perfect. We have been calling for this for years."

Greg Fitzgerald, the chief executive of housebuilder Vistry said, "We are encouraged by the moves which seek to deliver short, medium and long-term changes to unblock and reform the planning system."

Sir Nigel Wilson, group chief executive at Legal & General, says: "We welcome Labour's approach, which seeks to take a holistic view of barriers to deliver ambitious outcomes [in the housing sector]."

It was Mark Carney who delivered the surprise intervention into the Reeves presentation. Mark Carney, Governor of the Bank of England between 2013 and 2020 in a video message ahead of her speech, described Rachel Reeves as a "serious economist"

"She began her career at the Bank of England, so she understands the big picture," he said. "But, crucially she understands the economics of work, of place and family. It is beyond time we put her energy and ideas into action."

Well we didn't see that coming either. He didn't say that about Jeremy Hunt. Maybe all that glitters, can be sold after all, with a little bit of central bank sparkle.

Ready To Serve, Ready To Lead, Ready To Rebuild, Ready For Action ...
Let's Get Britain's Future Back on Track ...
That's all for this week! Have  a great weekend,

John
To understand the markets, you have to understand the economics ...
References This Week
Morning Call : Three Keirs for Starmer. Freddie Hayward New Statesman 11 October 2023
Keir Starmer : Key Points and Policies from the Labour Party Conference Chris Smyth, George Grylls The Times. 10th October.
Carrying A Ming Vase : A spectre haunts the Labour Party. Phillip Johnston. The Telegraph 10th October 2023.
Rachel Reeves Gives Her Best Speech Yet Freddie Hayward The New Statesman 10th October 2023.
Five Key Messages from the Labour Party Conference, Richard Partington The Guardian 10th October 2023
The Times Focus Group Reference, Matt Hancock  The Times 14th October 2023
© 2023 John Ashcroft, Economics, Strategy and Financial Markets, experience worth sharing.
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