UK (Parliament Politics Magazine) – Chancellor Rachel Reeves is under pressure over her economic policies as she relaunches her growth agenda and pledges to address business concerns and achieve targets.
Business leaders urge the Chancellor to fulfil the growth promises made during the election campaign and restore economic trust.
The Chancellor’s first major speech since October’s Budget aims to outline how she will deliver on economic promises. This address comes after a wave of criticism and rising fears of a recession.
As business confidence plummets and business heads accuse of deceit, Chancellor Reeves and the British Prime Minister held talks with major UK companies to rebuild trust and speed up efforts to revive the economy.
What will the Chancellor say in her speech in Oxfordshire on Wednesday?
During her speech in Oxfordshire, Rachel Reeves will stress that the government’s top priority is to boost economic growth through its Plan for Change. She will highlight the UK’s significant potential, especially its leading role in developments like AI and life sciences.
Ms. Reeves will reaffirm the government’s commitment to the Oxford-Cambridge Growth Corridor, which the previous Conservative government scrapped in 2022. According to a government report, the initiative, which covers transport, business growth, and housing expansion, has the potential to contribute £78bn to the British economy by 2035.
In a major announcement during her address, she is set to confirm a deal that will enable companies to invest £7.9bn in the development of nine new reservoirs. Two of these will be located in Somerset, with one each in Lincolnshire, Hampshire, Cambridgeshire, Oxfordshire, Suffolk, Kent, and the West Midlands. The move comes nearly three decades after Britain last opened a new reservoir in 1992.
She will announce that the government will back the redevelopment of Manchester United’s Old Trafford stadium and reveal new plans to enhance project assessment and prioritization. The aim is to promote public investment throughout Britain, focusing on areas outside London and the Southeast.
Ms Reeves will say,
“Low growth is not our destiny, but that economic growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.”
Will Chancellor Rachel back the expansion of Heathrow Airport?
In her speech on economic plans, Rachel Reeves is expected to endorse airport expansion.
Although she has yet to make a final decision, she has hinted at backing it. She stated that the expansion would allow flights to land directly instead of circling London and that the use of sustainable fuel could play an essential role in fulfilling the UK’s environmental goals.
Why are Lib Dems questioning Reeves’ growth and Brexit plans?
Some critics have raised concerns about her ongoing support for “anti-growth” policies, such as raising workers’ rights and changing inheritance tax laws that affect family-owned farms.
The Liberal Democrats questioned why Ms. Reeves and Keir Starmer refuse to shift their red lines on Brexit, urging them to rejoin the EU customs union and single market as part of their economic growth plans.
Daisy Cooper MP, Lib Dem Treasury spokesperson, stated, “Trying to boost growth without fixing our trading relationship with Europe is like driving with the handbrake on.”
He added the government must prioritize national interest and review the decision to join the UK-EU customs union.
What led Chancellor Rachel to make a major speech in Oxfordshire?
Last week, Ms. Reeves outlined a new strategy for the National Wealth Fund (NWF) and the Office for Investment (OFI). The strategy focuses on collaboration with local leadership to develop investment channels and projects that support regional growth goals.
As part of the initiative, the NWF will begin testing strategic partnerships in regions like Greater Manchester, West Yorkshire, the West Midlands, and Glasgow City. Meanwhile, the OFI will implement a trial in Liverpool and the North East Combined Authority to connect these areas with national governments and specialists to secure private investment.
What did Business Secretary Jonathan Reynolds say about growth and climate goals?
Before Chancellor Rachel Reeves’ speech on growth, Mr. Reynolds highlighted that economic growth and net zero targets can be achieved together.
He stated,
“The big growth opportunity around the world is in climate, adding, “The fact that we’ve had as a country, I think, three times the level of inward investment into renewable energy than any comparable European nation.”
Mr Reynolds pointed out that Britain possesses “offshore energy potential” that is unmatched by other nations.