Shadow chancellor Rachel Reeves branded Labour’s economic approach “securonomics” in a speech aligning its policy with US President Joe Biden’s administration.
In a talk at the Peterson Institute in Washington DC, she also suggested the current Brexit deal would be “reviewed” under a Labour government by 2025.
The shadow chancellor said an “age of insecurity” has dawned which requires a more active state and a stronger industrial strategy to bolster Britain’s economy.
This will mean “investing in the sectors and technologies that will determine our future economic success”, she said.
Ms Reeves said: “Today, I am going to talk about how errors in economic policymaking allowed Britain’s economy to weaken.
“How the long, hard years of austerity, and the chaos of our recent governments, compounded the damage and how global shocks exposed our weaknesses with devastating consequences for working people.
“But I am also going to talk about how an approach that I call ‘securonomics’ can right these wrongs.
“By drawing on the talent and effort of millions of working people in every part of the country.
“By forging a new partnership between an active state and dynamic open markets and by fostering a new era of global partnerships between nations with shared values and interests.”
Ms Reeves praised the administration’s Inflation Reduction Act for pursuing clean energy and industry while promoting Labour’s flagship £28 billion-a-year “green prosperity plan”, which has similar aims.
President Biden’s programme seeks to curb inflation by cutting the deficit and investing in domestic energy production while promoting clean energy.
Ms Reeves suggested Labour would hope to deepen and redefine UK-US ties as a “green special relationship”, with a focus on renewable energy such as offshore wind and carbon capture and storage.
On Brussels, Ms Reeves expanded on Sir Keir Starmer’s suggestion that Britain needs a “better deal” with the EU, saying a review of the current legislation would begin by 2025 under Labour.
“Britain with Labour will be a trading nation, exporting across the world and open to business and investment at home,” she said.
“Britain cannot, should not and – with Labour in power – would not try to go it alone.
“In 2025, the UK’s deal with the European Union will be reviewed.
“While there’s no going back into the single market or the customs union, with Labour we would make trade easier with Europe, and rebuild ties with our closest neighbours.”
She added: “My opposite number, Jeremy Hunt, the current Chancellor of the Exchequer, has made his position clear. He considers the Biden administration to be engaged in a ‘distortive global subsidy race’.
“Speaking at Davos earlier this year, Grant Shapps, Britain’s Energy Secretary, called the policies ‘dangerous’.
“I can promise today that a Labour government be different.”
You may also like: Rees-Mogg questions whether Government seeks to remain aligned with EU