Labour peer calls for Treasury to be abolished

A Labour peer has repeated his call to "abolish the Treasury", and says the government should shift its focus to industrial revival to radically reshape the British economy.

Maurice Glasman, the founder of the Blue Labour campaign, has said he and Blue Labour supporters needed to intensify their calls for "economic radicalism".

Speaking at a fringe event at Labour's conference in Liverpool, Lord Glasman suggested his campaign group's ideas had become more mainstream within the party.

But appearing alongside three Labour MPs, Lord Glasman said the government needed to be bolder on economic policy.

"We need to abolish the Treasury," Lord Glasman said. "That's just got to go."

"They're a block on industrial strategy. It's full of - no disrespect to anybody in the room - PPE graduates who are really neoclassical. They don't understand the meaning of vocation and the meaning of work."

He said heavy industry and vocational jobs were the future, and suggested many white collar workers, such as accountants, could be redundant as artificial intelligence develops.

Lod Glasman said the Treasury's powers should be given to the prime minister and a economics ministry should be created to oversee his economic policies.

He added: "But also close down half of universities and turn them into vocational colleges just to open the conversation.

"We've got to change direction quite radically and honour the dignity of Labour and skilled work."

His views were echoed by Labour MP Jonathan Hinder, who was on the panel at the event, titled the Rise of Reform: what should Labour do?

Hinder said Blue Labour was about promoting a "radical left-wing economic alternative" that he claimed goes down well with Reform UK voters, or those minded to back Nigel Farage's party.

"We really need to rethink what we're trying to do economically," Hinder said.

He added: "We need to rediscover that radicalism with a proper industrial strategy. The government has got one but it is not as ambitious as I'd like."

Chancellor Rachel Reeves, who is due to deliver her second autumn Budget in November, has argued she is prioritising economic stability above all else in government.

Reeves has said repeatedly her self-imposed rules on borrowing to pay for public services are "non-negotiable".

But in recent months, the chancellor has found herself challenged over spending cuts by Labour MPs, especially over the issue of welfare.

Higher borrowing costs and expected tax rises are also piling pressure on the chancellor ahead of the Budget.

While it's highly unlikely Lord Glasman's proposals will be implemented in full, his ideas could gain influence within a government threatened by the rise of Reform UK party, which is targeting traditional Labour voters.

Blue Labour promotes blue-collar and culturally conservative values within the party – for example on immigration and crime – while remaining committed to left-wing economic policies.