STREETING SAYS PRIVATE EQUITY BAN REMOVED FROM LABOUR MANIFESTO

Wes Streeting has stated that his proposal to ban private equity firms from the social care sector was removed from the Labour manifesto before the party came to power. Streeting, in a Fabian Society report on establishing a national care service, accused the government of "overcautiousness" in pursuing reform. A Labour source indicated that Keir Starmer's team withdrew the policy because they feared it appeared "anti-business". Streeting said the culture of caution that prevented the policy's inclusion in opposition continued after Labour entered government.

The private equity proposal, first announced in 2022, would have prohibited firms that failed to meet national standards in care quality, workers' rights and financial sustainability. Streeting also stated that a proposal for a royal commission was similarly removed from the manifesto. He noted that Downing Street delay meant the Casey commission, a review into reforming adult social care, would not conclude until 2028, making significant sector change before the next general election unlikely. Streeting resigned as health and social care secretary and called for Starmer to resign as prime minister following the May elections.

It is understood that Streeting intends to resurrect his private equity regulation plans in a future government. Andy Burnham, also expected to contest the leadership, stated he would address the social care system "this year" and would not hesitate to pursue reform. Streeting is expected to run in any imminent leadership contest.