The following statement from Katy Clark’s office on 5th September has turned out to be an interesting piece of political foresight, given that what Katy Clark calls for is exactly what Liz Truss and colleagues have gone on to not do…
New PM Liz Truss must urgently launch an “unprecedented package” to fight “post-war levels of inflation” and stave off recession, Scottish Labour MSP Katy Clark has said.
The former Political Secretary to Labour leader Jeremy Corbyn, said massive investment in renewables, major infrastructure developments and a rapid mobilisation of industry were needed to mitigate against the coming recession.
Ms Clark, MSP for West Scotland, argued a “Marshall-style plan” modelled on the $12billion US scheme to rebuild western Europe after the Second World War was needed in the months to come.
She commented: “We are reaching a national emergency. Economists say we could hit post-war levels of inflation next year, so nothing less than an unprecedented package will do.
“Liz Truss cannot put her head in the sand and pretend tax cuts for the super-rich will solve this crisis. The UK needs to be put on an economic war footing.
“That must mean a Marshall-style plan to mobilise industries that bring us vital services and goods, a major house insulation programme and enhancing our energy security.
“As was the case during the pandemic, keeping the economy afloat and supporting households is far more important than ‘balancing the books’.
“The Government must spend quickly and spend big, funded through borrowing and a further windfall tax on the soaring profits of oil and gas firms.
“This must be accompanied by an immediate restoration of the pre-April energy price cap to help families and bringing the energy sector into public ownership.”
Featured image shows Katy Clark credit: arrancoast.com