In a landmark address to the House of Commons, Chancellor Rachel Reeves didn't mince words as she declared Britain's economy is facing an "emergency" following what she described as 14 years of Conservative mismanagement. The new Labour government's first major economic intervention sets the stage for sweeping reforms aimed at kickstarting growth and stability.
The Inheritance: A Damning Assessment
Reeves painted a stark picture of the economic landscape she's inherited, revealing that:
- Public sector net debt has reached its highest level since the early 1960s
- The tax burden is at a 70-year peak
- Living standards have stagnated for over a decade
- Public services are stretched to breaking point
"The legacy we have inherited is the worst since the Second World War," the Chancellor stated bluntly, setting the tone for what promises to be a period of significant economic transformation.
Planning Revolution: The Centrepiece of Growth
In perhaps the most significant announcement, Reeves unveiled what she called a "blitz" of planning reforms designed to remove barriers to economic development. Key measures include:
- Restoring mandatory housing targets that had been abandoned by the previous government
- Fast-tracking decisions on critical infrastructure projects to accelerate development
- Reinstating the national planning policy framework to provide clarity and consistency
- Ending the de facto ban on onshore wind farms in England to boost renewable energy capacity
Fiscal Responsibility: The New Golden Rule
The Chancellor emphasised her commitment to fiscal discipline, announcing that the Office for Budget Responsibility (OBR) will now be required to produce forecasts for every major fiscal event. This move aims to restore credibility and transparency to government economic planning.
"I believe in wealth creation," Reeves told MPs, "but that must be built on the foundation of economic stability."
Tax and Investment: A Balanced Approach
While ruling out increases to National Insurance, income tax, or VAT, the Chancellor confirmed several tax measures including:
- Closing "loopholes" in the windfall tax on oil and gas companies
- Maintaining the planned increase in business rates
- Reviewing the apprenticeship levy to better support skills development
The speech sets the stage for what promises to be a transformative period in UK economic policy, with growth and stability positioned as the twin pillars of Labour's economic strategy.
