Starmer may finally have found his ‘magic money tree’ – but his party won’t like it

If he is to have any hope of funding infrastructure projects after the HS2 debacle, Keir Starmer could soon find himself making a ‘deal with the Devil’ by hopping into bed with private investors, writes Andrew Grice

How would Labour persuade the private sector to fund public projects on more favourable terms for taxpayers than previously? (PA)

The HS2 fiasco, which has highlighted the UK’s poor record on major projects, also raises big questions about how the country will fund infrastructure in future.

It is a particularly acute one for Labour. Keir Starmer has ruled out reviving the full HS2 programme after Rishi Sunak finally killed the Birmingham to Manchester leg. Starmer has sidestepped a Tory trap by supporting the £36bn of rail, road and bus schemes Sunak promised instead. So there is no pot of “HS2 savings” for Starmer.

Indeed, Labour minds are starting to fret about how an incoming Starmer government which inherited eye-wateringly tight public spending plans, with tough self-imposed fiscal rules and a pledge not to raise taxes, could afford the infrastructure projects it would need to boost economic growth.