Labour's better plan for economic prosperity

Its fantastic to be here at Jaguar Land Rover to launch our plan for prosperity.

JLR is a great British success story. It is the jewel in the crown of our resurgent automotive industry. 

The resurgence of the automotive industry, has proved the truth that was – for too long in Britain – heresy:  That great companies succeed more in strong sectors. 

It has been one of the critical missing pieces of Britain’s growth model. 

We need competitive markets so that firms are efficient and consumers get a fair deal.  We need rules of the game that support and encourage firms to build for the longer-term. 

And we also need strong sectors, for those things that no firm can do alone – training skilled workers; developing new materials, technologies and working practices; ensuring committed, intelligent finance; developing the support infrastructure to export.

This approach – begun with Lord Mandelson under Labour – has proven its value in the automotive industry and others. 

And let me be clear: in relation to work those sectors – and others like creative industries – are already engaged in, our message to you is one of continuity: continuity wherever possible, change only where necessary.

In addition, we know that even the best sectoral strategy is more effective when it is driven by a committed and coordinated, whole government approach – on procurement, on innovation, on finance, and on infrastructure. 

And now – as our plan for prosperity sets out – we must go further and spread the impulse to innovate right across the economy. We must transform Britain from a nation of innovative sectors to a nation of innovators.

It is only by marrying innovation and inclusion that we can meet the productivity challenge our nation faces, improve the experience of work for most people, raise living standards, and balance the books. This is the way to ensure that everyone has a stake in the future, and that the next generation can always do better than the last. 

So we will broaden the focus of industrial strategy, spreading the benefits of the sectoral approach beyond high-value, export focused sectors to include those where the majority of people are employed.  Because the same insight is true:

Where firms in a sector work together – to train their people, develop new technologies, find new ways of working, trade expertise – it makes it easier for each individual firm to pursue higher value strategies, make bigger profits, pay higher wages and create more secure jobs.

This is the way we raise productivity, pay down the deficit and create more balanced, sustainable and inclusive growth. This is the way we earn and grow our way to higher living standards. This is the better plan for a more prosperous Britain.