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Britain’s economy is in the pits – Starmer and Reeves can’t even get it into second gear

Sir Keir Starmer turned up at the McLaren Technology Centre to gatecrash Lando Norris’ sensational F1 world championship but Labour’s growth drive has crashed.

PM Sir Keir Starmer

Businesses have no confidence in Labour to address a chronic skills shortage (Image: PA)

In keeping with the shameless opportunism that has come to embody this government our pitiful PM gatecrashed the McLaren Technology Centre in Woking. Of course, he did.

The official reason was to try and reignite Labour’s failing drive to get more young people into apprenticeships. The fact Lando Norris won the F1 world championship just a few hours earlier was a mere coincidence.

If Sir Keir Starmer was hoping a little Surrey stardust might rub off on him he’s got another think coming.

The only thing that links Starmer (who has a net approval rating of -51) and Chancellor Rachel Reeves, who has left the economy in the pits, and F1 is that both endlessly go round in circles.

Muscling in at McLaren will fool no one because Britain is being lapped by most countries when it comes to skills.

Last year the PM announced the launch of Skills England to bring together central and local government, businesses, training providers and unions in an attempt to meet the needs of the next decade.

It finally spluttered into life 12 months later but, according to those it was set up to serve, performs little useful purpose.

Skills England was meant to create a “coherent national picture of where skills gaps exist and how they can be addressed”.

Like most of what is conceived by Labour it is nothing of the sort.

Despite claims it will play a critical role in driving growth, supporting people to get better jobs and improve standards of living, two thirds of firms do not understand how it works.

In short British businesses have no confidence this government will solve what now amounts to a chronic skills shortage.

Sir Keir Starmer

The PM visits McLaren Automotive in Woking a day after Lando Norris won the F1 world championship (Image: PA)

Some 64 per cent of 107 companies polled in a recent temperature check say they are suffering from an acute skills shortage but only 45% believe Labour will be able to solve the crisis.

Daming results also show more than half are struggling to recruit and retain existing staff.

James Worthington, Co-Managing Director of branded workwear company MyWorkwear which carried out the survey, said: “Having been in business since 1976 and working with so many industries, we often pick up trends across a wide variety of sectors, and the skills shortage is definitely something impacting a large majority of our customers.

“There is little confidence from businesses that the Government’s approach will solve the crisis we’re seeing and this is undermining confidence. You can’t really make the most of new opportunities, if you don’t have the talent in place to meet customer requirements.”

The national emergency has arisen because of a lacklustre commitment to reskill the workforce.

Higher pay will only come from higher productivity but that requires urgent action to equip people with the necessary expertise.

And Labour is failing.

Bullish businesses once sitting in pole position are now on their uppers because of Labour’s vicious tax assaults ​but say lack of skilled labour remains their number one concern.

Yet they are unable to help themselves as training budgets have been torpedoed thanks to rising inflation and increased employers’ National Insurance and wage costs. ​For that we can thank a Chancellor who has sent the economy careering into the buffers.

The inability to heed repeated calls from businesses who desperately want to give people shop-floor experience seems remarkable, especially after Ms Reeves’ Budget emboldened those who see benefits as a route to financial security.

Firms want the freedom and tax incentives to take on more apprentices to make the UK competitive, but say Labour’s incompetence has seen them slump into last place.

Britain was once an economy in the fast lane. Under Labour it is on the road to nowhere.

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