Labour’s Shadow Chancellor John McDonnell and former Labour Prime Minister Gordon Brown will team up today (Thursday) to address a Labour IN campaign event in Manchester to set out the positive case to remain in the EU and reject a Tory Brexit.
They will also both address Labour’s economic case for Britain to remain in a reformed Europe, spelling out that UK households would be the equivalent of £1,320 better off if they vote for a Labour Remain next Thursday.
At present, Britain receives less than the per capita average funding from the EIB. It has been unable to match the per capita average funding because of Tory changes to the regional infrastructure required to make successful funding bids in England, which have weakened its effectiveness compared to the devolved administrations.
Under the Juncker Plan that promises a massive boost to infrastructure and investment spending across Europe by €320bn, to be delivered by the European Investment Bank, the UK’s share of the EIB’s capital is 16%, so a fair share of the additional investment is 16%.
Accounting for funding already delivered, this is an extra £35bn, or the equivalent to over £1,300 per household of extra funding. The UK government should work to ensure that the UK receives its fair share of funding.
Speaking ahead of the event, John McDonnell MP, Labour’s Shadow Chancellor, said:
“Thanks to George Osborne’s spending cuts, Britain has enormous infrastructure needs and it is hard-hit industrial regions that can benefit the most from European Investment Bank funding.“
“Under Labour’s plans we could secure an additional £35 billion in additional funding, which would mean households would better off to the equivalent of £1,320. This injection of Labour Investment could be a boost to British families struggling to get to the end of each month.
“That is why we want Labour voters to vote next Thursday for Labour Investment in a reformed EU, and reject a Tory Brexit.”
Gordon Brown, former Labour Prime Minister, will say:
“In the 1980s the Tories turned our industrial heartlands into industrial wastelands.
"Their ideology was that there was no such thing as society and everyone was on their own.
"What stood between our communities and further devastation was the European structural funds, regional funds and social funds that Tory Brexiteers would now cut.
"European money is necessary for renovation, renewal and regeneration - and right across the North, Scotland and Wales it is still vitally needed now.”
“All my political life I have fought for jobs and a vision of full employment for our country.
“To achieve this, we need to send our exports to where we sell most – the European Union.
“I estimate that 500,000 more jobs can be created in Britain in the next ten years from reform of the single market, the European infrastructure program and co-operation in the energy and environmental industries.
“And I ask everyone who works in the car industry, the aviation industry, the pharmaceutical industry and the food and drink industry in the North, to tell their fellow citizens of the importance they attach to the jobs that come from their exports to Europe – and the risks of losing these jobs to Brexit in the future.”
Ends
Notes to editors
* The Juncker Plan provides for a €320bn increase in funding through the European Fund for Strategic Investment, targeted at infrastructure and other projects across the whole of the EU. http://ec.europa.eu/priorities/jobs-growth-and-investment/investment-plan_en
* UK government forecasts imply a real-terms funding cut of £2.7bn to £32.1bn to public investment by 2019-2020. Increased EIB funding could be used to more than make good this shortfall.
* EIB funding to the UK represented 11% of EU-wide EIB funding in 2015. The UK’s share of EIB capital is 16%. Taking a 16% share of the €320bn Juncker Plan, and allowing for money already committed, is €45bn of extra funding. https://www.gov.uk/government/news/new-figures-show-record-european-investment-bank-investment-in-uk-in-2015