Shadow Chancellor of the Exchequer Rachel Reeves is interviewed at the BBC in London, Britain October 24, 2021. REUTERS/Peter Nicholls/File Photo

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LIVERPOOL, England, September 25 (Reuters) – Britain’s Labor Party will unveil plans on Monday to set up a national fund to invest in green projects that will benefit the public, as part of the opposition party’s response to the cuts in Conservative government taxes approaching.

At their annual conference, Labor lawmakers sense a change in their fortunes after a punishing defeat in the 2019 election, believing they can now offer voters a real choice after the government announced a ‘growth plan’ that granted tax cuts mainly to large corporations and the wealthy.

The so-called mini-budget has driven a wedge between Prime Minister Liz Truss’ Tories and Keir Starmer’s Labor Party, which wants to use the years before a scheduled election in 2024 to prove its team is ready for power.

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Rachel Reeves, Labour’s financial policy chief, will tell the conference in the northern English city of Liverpool that the party wants to “build up British industry” using a national wealth fund similar to funds in Norway and Singapore, with an initial amount of 8 billion pounds ($8.7). billion) earmarked for green projects.

“Because at the conference, when I say I want to buy, make and sell more in Britain, I mean it,” she will say, according to excerpts from her speech.

‘It’s a real growth plan,’ she will say, targeting the ‘Growth Plan’ presented by Finance Minister Kwasi Kwarteng on Friday, as Labor accused it of privileging the wealthy over the workers struggling with rising prices by turning to the discredited theory of “trickle down economics”.

The plan swung the government to the right, giving Labor a chance to prove they could manage the economy effectively but also help low-income people and protect public services, a source close to the leadership said .

Kwarteng scrapped the country’s highest income tax rate and reversed a planned corporate tax hike, all on top of a hugely expensive plan to subsidize household and business energy bills , with few details on how it would be paid off in the short term beyond rising public debt.

In response, the pound fell more than 3% to its lowest since 1985 against the US dollar on Friday, and also weakened against the euro and the Japanese yen, while government bonds recorded their biggest daily sale in decades.

On Sunday, Starmer pledged to reverse the abolition of the top income tax rate and restore it to 45%, saying tax cuts for the wealthy would not spur growth.

Ed Miliband, Labour’s climate policy chief, said Labour’s plans would send jobs back to Britain.

“These are good, well-paid jobs, with strong unions and money going back into the pockets of Britons.”

($1 = 0.9211 pounds)

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Reporting by Elizabeth Piper; Editing by Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

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