Labour leadership hopeful Owen Smith promises 'a new industrial revolution'

Leadership hopeful: Owen Smith will today set out his vision "a new industrial revolution"
EPA
Hannah Al-Othman8 August 2016
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Labour leadership contender Owen Smith will today set out his vision for "a new industrial revolution" to make the UK into "the workshop of the world".

In a speech in Newcastle, Mr Smith is set to warn that Britain is "on the cliff edge of another recession" and will call for urgent action to secure the health of the economy in the short term as well as investment in the industries of the future.

The Labour leadership hopeful will also restate his demand for a second EU referendum on whatever deal emerges from Brexit negotiations.

And he will pledge that as Labour prime minister, he would seek to bring about "fundamental structural reform" of the economy, in part by investing in high-skilled jobs in renewable energy and the creative industries.

The Pontypridd MP - who is challenging Jeremy Corbyn for the Labour leadership in a ballot of party members and supporters ending on September 24 - will accuse successive governments since the 1980s of allowing manufacturing to dwindle, while favouring the growth of the financial service sector and the creation of low-skill, low-pay jobs.

Speaking at a tech start-up centre, Mr Smith will say: "The unprecedented action taken by the Bank of England to cut interest rates to a 300-year low and expand quantitative easing shows that the British economy is on the cliff edge of another recession, with ordinary people, again, set to pay the price.

"Under the Tories, we face the prospect of our country being the sick man leaving Europe - unless urgent action is taken by government."

Mr Smith last week challenged Mr Corbyn to join him in demanding a national vote on the EU deal achieved by Brexit Secretary David Davis, but the Labour leader later said that the party must "abide by" the result of the June 23 referendum.

Mr Smith will today say: "I will not allow the UK to fall coughing and spluttering out of the EU door. I am resolute that the British people must be offered an opportunity to sign off the terms of a Tory deal on Europe."

The last chance to secure a vote in the leadership election came at noon on Monday, which was the deadline for members of affiliated trade unions and socialist societies to register as supporters of the party.

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