LONDON: Keir Starmer, who polls show is on course to be Britain’s next prime minister, says his Labour Party would target economic growth of at least 2.5% if it came to power at the July 4 general election.

“Under the last Labour government, we grew by about 2.5%,” Starmer said in an interview with ITV which was recorded on June 21 and due to air today.

Asked if he was looking to achieve the same, he replied: “Certainly, yes.”

Starmer has put economic growth at the heart of his election pitch, yet until now he hasn’t specified a figure as he tries to position Labour as the party of wealth creation after the recent stagnation under Rishi Sunak’s Conservative Party.

Britain has struggled for momentum as the highest interest rates in 16 years continue to weigh on firms and households.

The Labour leader is banking on a quick return to growth to avoid having to make painful tax and spending choices if his party wins the election.

Starmer has said he doesn’t need to spell out how he’d fix the UK’s public finances.

Bloomberg Economics predicted that the next UK administration would need to find from somewhere £20bil of revenue-raisers to deliver current spending plans, because economic growth will boost the tax take and plug the gap.

Yet the influential Institute for Finnacial Studies think tank and other economists said it’s not credible to believe growth will come to the rescue so quickly.

Starmer has hit back at this critique, saying he doesn’t accept the “defeatism” of believing the economy won’t improve quickly.

Starmer is planning a blitz of reforms to boost house-building and expand infrastructure, while also creating a state-run clean energy company, GB Energy, to spur the net-zero transition.

Other plans include reforming workers’ rights, creating a new industrial strategy and setting up a national wealth fund.

 - Bloomberg