In a landmark statement to the House of Commons, Chancellor Rachel Reeves has declared Britain's "age of irresponsibility is over" as she laid out her vision for economic stability following last week's general election victory.
Planning System Overhaul
The new Labour Chancellor announced sweeping reforms to the planning system, describing it as "the greatest single obstacle to our economic success." Key measures include:
- Restoring mandatory housing targets for local authorities
- Ending the de facto ban on onshore wind farms in England
- Fast-tracking approval for data centres and other critical infrastructure
- Creating a new taskforce to accelerate stalled housing sites
"Our antiquated planning system has been a barrier to opportunity and prosperity for too long," Reeves told MPs, emphasising that these changes would unlock billions in private investment.
Fiscal Discipline Pledge
The Chancellor committed to strict fiscal rules, including:
- Borrowing only to invest with debt falling as a share of GDP
- Ensuring everyday spending is funded through taxation
- Maintaining the current levels of departmental spending
"I know the scale of the challenge we face," Reeves acknowledged, pointing to the highest debt burden since the 1960s and public services stretched to breaking point.
Economic Inheritance
The Chancellor didn't shy away from criticising the previous government, stating she had discovered the worst set of public finances since World War II upon entering the Treasury.
Despite the constrained fiscal environment, Reeves emphasised that her approach would be pro-business and pro-worker, focusing on creating the stability needed for long-term economic growth.
The full budget, expected to contain more detailed tax and spending measures, will be presented later this year following the usual Office for Budget Responsibility forecasting process.
