Chancellor Rachel Reeves has pledged to “fix the foundations” of the British economy, unveiling an immediate plan to boost growth by unblocking infrastructure and private investment in her first speech. She will declare economic growth for all parts of the country as a “national mission” and promise tough decisions to deliver on the new government’s mandate.
Reeves, who spent the weekend at the Treasury, will argue that had the UK economy grown at the average rate of OECD countries since 2010, it would have been £140bn larger. She plans to strengthen the existing growth unit within the Treasury, with a source saying: “It’s growth, growth, growth.”
The government is expected to confirm changes to planning regulations this week, including reinstating mandatory housing targets for local authorities and making it easier to build on green belt land. It will also announce a review of the National Planning Policy Framework to simplify construction of homes, laboratories, digital infrastructure and gigafactories, and launch a consultation on new towns.
Other announcements include talks to end junior doctors’ strikes, a recruitment advert for a new border security commander, and a reopening of the government’s teacher recruitment campaign. Defence Secretary John Healey pledged that military aid to Ukraine is “guaranteed” and committed to boosting UK defence spending to 2.5% of GDP.
Prime Minister Keir Starmer is spending 24 hours travelling to Scotland, Northern Ireland and Wales to underline his commitment to all parts of the UK. He plans to set up a council of nations and regions, one of the main recommendations from a constitutional reform commission chaired by Gordon Brown.
Deputy Prime Minister Angela Rayner will meet English metro mayors on Tuesday to discuss Labour’s plan to “power up” Britain through more devolution and local growth plans. The levelling up slogan will be dropped from her department’s name, with an insider saying: “We agree with the principle of levelling up, but it was a gimmicky branding exercise.”
