Rachel Reeves has gone on the attack on the Tories, accusing them of lacking bravery and having no plan.
She criticised the previous Government during a key speech in which she outlined ways to grow the economy. She announced the Government would back a third runway at Heathrow and create a “European Silicon Valley” – as well as supporting a long-anticipated development at Old Trafford.
But the Chancellor risks the anger of environomental groups, raising questions about the Government’s green commitments. She said there would be “no trade-off” with Net Zero, but said expanding Heathrow would make the UK “the world’s best connected place to do business”.
It comes after Keir Starmer vowed to “clear out the regulatory weeds” to encourage growth – referencing Margaret Thatcher’s drive to cut red tape. He warned that for “too long regulation has stopped Britain building its future”.
Here we look at some of the key things from Ms Reeves’ speech.
Airport expansions
Announcing the controversial decision to support a third runway at Heathrow, Ms Reeves said: “The last runway in Britain was built in the 1940s. No progress in 80 years. Why is this so damaging?
“It’s because Heathrow is at the heart of the UK’s openness as a country. It connects us to emerging markets all over the world, opening up new opportunities for growth. Around three quarters of all long haul flights in the UK go from Heathrow.”
She said the need for a runway is “stronger than ever”. Ms Reeves said the Government is inviting proposals by the summer.
The Chancellor went on: “Now is the time to grasp the huge opportunity in front of us. By backing a third runway at Heathrow, we can make Britain the world’s best connected place to do business.
“That is what it takes to make decisions in the national interest and that is what I mean by going further and faster to kick start economic growth. The work of change has begun.”
On top of the Heathrow announcement, Ms Reeves also reiterated the Government’s support for works at London City Airport and Stansted.
She also indicated that Luton and Gatwick airports may be granted permission to expand soon. A large scale industrial hub will also be built at East Midlands Airport.
Old Trafford
One of her key announcements in the speech today was to champion proposals to revitalise the area around Old Trafford – with housing, transport and entertainment development around a state-of-the-art stadium for manchester-united-fc>Manchester United.
The club is pushing for a new 100,000 seater ground or an 87,000-seat refurbished arena – a £2billion project dubbed the “Wembley of the North”.
Manchester United would foot the bill for the stadium but public bodies would be involved in supporting creation of new homes and transport infrastructure.
Greater Manchester Mayor Andy Burnham wants a massive regeneration project around Old Trafford, which he said “represents the biggest opportunity for urban regeneration this country has seen since London 2012”.
Visa shake-up
The Government will look at a visa shake-up to bring more skilled workers to the UK, Ms Reeves said.
The Chancellor said: “We will look at the visa routes for very highly skilled people, so the best people in the world choose the UK to live, work and create wealth, bringing jobs and investment to Britain.”
Concerns about Grenfell-sytle tragedy
Ms Reeves was asked by The Mirror’s Sophie Huskisson whether cutting red tape could lead to another Grenfell Tower-style tragedy.
An inquiry into the 2017 blaze found that deregulation was a factor. Ms Reeves responded: “The Prime Minister and the deputy Prime Minister have both been to Grenfell and have made commitments to the families there to learn the lessons from, what happens.
“So of course, we’ve got to get the balance right, on regulation.”
Oxford-Cambridge arc ‘has potential to be Europe’s Silicon Valley’
Ms Reeves confirms that a new ‘Ox-Camb arc’ between Oxford and Cambridge – first proposed over 20 years ago – will finally move ahead.
She said: “This area has the potential to be Europe’s Silicon Valley. To me, that’s a reality.”
And the Chancellor went on: “We are not prepared to miss out on the opportunities any longer.”
The Chancellor announced the Government’s backing for housing, transport and other investment in the Oxford-Cambridge corridor, which she said could add £78 billion to the UK’s economy by 2035.
Savage dig at Tory lack of plan
Defending some of her controversial decisions such as increasing National Insurance contributions, Ms Reeves said she has been “pragmatic”.
She went on: “I accept that there are costs to responsibility, but the costs of irresponsibility would have been far higher. Those who oppose my budget know that too.
“That is why, since October, I’ve seen no alternative put forward by the opposition parties. No alternative to deal with the challenges that we face. No alternative to restoring economic stability and therefore no plan for driving economic growth.”
She says: “For too long, we have accepted low expectations and accepted decline. We no longer have to do that. We can do so much better.”
New trade talks with India
The Chancellor announced the Business Secretary Jonathan Reynolds will soon head to India to restart stalled talks on a trade deal with the country.
The deal was long promised by the Tories with the UK involved in over a dozen rounds of negotiations with Narenra Modi’s government from 2022.
But the Conservatives failed to achieve the deal before last year’s general election, with the new Labour government now picking up the negotiations.
The Chancellor said: “I am pleased to confirm that the Business and Trade Secretary will shortly visit India to restart talks on the free trade agreements and bilateral investment treaty that the last government failed to deliver.”
‘No Net Zero trade-off’ as Reeves announces funding for two green projects
The Government is putting its money where its mouth is, pledging more than £90million on two green projects.
Ms Reeves said: “Today, I can announce two further investments by the National Wealth Fund. First, a £65 million investment for Connected Kerb to expand the electric vehicle charging network across the UK.
“And second, a £28 million equity investment in Cornish metals, providing the raw materials to be used in solar panels, wind turbines and electric vehicles, supporting growth and jobs in the South west of England.”
She added: “There is no trade off between economic growth and net zero.”
‘We will move forward projects like the Lower Thames Crossing’ vow
Ms Reeves has promised progress on the Lower Thames Crossing on the outskirts of London.
The Chancellor said: “We will work with the private sector to deliver the infrastructure that our country desperately needs. This includes the Lower Thames Crossing, which will improve connectivity at Dover, Felixstowe and Harwich, alleviating severe congestion as goods destined to export come from the north and the Midlands and across the country.”
Chancellor ‘genuinely shocked’ by speed of planning system
Ms Reeves said she has been “genuinely shocked” by the speed of the planning system.
She vowed to streamline application processes to make sure that projects get built quickly. She said: “I’ve been genuinely shocked about how slow our planning system is by how long it takes to get things done.
“Take the decision to build a solar farm in Cambridgeshire. A decision that the energy secretary took only a few weeks into the job in July, but which had first come to government’s attention in 2021, is ridiculous.”
UK will work with Donald Trump and reset relationship with EU
The Government will work with both the EU and Donald Trump’s US administration, Ms Reeves said.
She told the audience in Oxfordshire: “We stand at a moment of global change. In that context, we should be guided by one clear principle above all to act in the national interest for our economy, for our businesses, and for the British people.
“That means building on our special relationship with the United States under President Trump. The Prime Minister discussed the vital importance of growth with the president last weekend, and I look forward to working with the new Treasury Secretary, Scott Benson, to deepen our economic relationship in the months and years ahead.
“Acting in our national interest also means resetting our relationship with the EU, our nearest and our largest trading partner, to drive growth and support business.“