Under the new plans, the chancellor said the government will not U-turn on its commitments to building safety but is seeking to fast-track major housing and infrastructure projects.
Today, Wednesday 29th January, chancellor Rachel Reeves unveiled the government’s plans to restore England’s economy. The announcement took place at Siemens Healthineers in Oxfordshire.
‘Today I want to talk about economic growth, why it matters how we achieve it and what we are going to do to go further and faster to deliver it,’ Reeves said whilst introducing her plans.
She added that economic growth ‘is the number one mission of this government’ and claimed it can help slash hospital wait times, meet climate goals and ‘improve the living standards of ordinary working people’.
On the subject of improving living standards, the speech was populated by a bonfire of new housing and infrastructure projects, of which the government have claimed they will stop at nothing to deliver them.
One of the developments includes proposals to link up Oxford and Cambridge – otherwise known as the ‘Oxbridge Arc’. The chancellor said that connecting these two well attended university cities could create ‘Europe’s Silicon Valley’.
Reeves claimed that the Environment Agency have lifted objections to new developments going up in Cambridge and said that this new scheme could create 4,500 new homes, offices and schools. What’s more, it could add £78bn to the economy by 2035.
‘Just 66 miles apart, these cities are home to two of the best universities in the world, two of the most intensive innovation clusters in the world, and the area is a hub for globally renowned science and technology firms in life sciences, manufacturing and AI,’ Reeves said.
‘To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area.
‘Oxford and Cambridge are two of the least affordable cities in the UK. In other words, the demand is there but there are far too many supply side constraints on economic growth in the region.’
Another development that has received government backing is to construct a third runway at Heathrow Airport – a decision that has previously been delayed for decades. Such a project would mean an increase in the number of flights from the airport from the current level, around 480,000 per year, to 720,000.
Understandably, the decision has sparked a lot of controversy among climate change activists, however when speaking to Laura Kuenssberg last Sunday, Reeves pinned her hopes on a move to zero-or low-emission aviation: ‘A lot has changed in terms of aviation.
‘Sustainable aviation fuel is changing carbon emissions from flying. There’s huge investment going on electric planes, and also a third runway will mean that instead of circling London, flights can land at Heathrow. So a lot has changed in aviation, and sustainable aviation and economic growth go hand in hand.
‘I believe that clean energy, that reducing our carbon emissions, are good for economic growth. We can do the two together.’
Meanwhile, Gatwick is currently waiting to hear whether they can move their second runway, which are only used for taxying plans as it’s too close to the main runway – and allows plans to take off from it. This would add 101,000 flights each year.
When ending her speech, Reeves highlighted that she and the government aim to end ‘the era of low expectations’ and deliver ‘for the British people’. However, Rosie Downes, head of campaigns at Friends of the Earth, said the government could achieve this without hindering climate goals.
‘Rachel Reeves’ assertion that growth trumps other concerns, and her reported support for aviation expansion, has set alarm bells ringing that our environment is under significant threat,’ she said. ‘A strong economy is vital, but this can be achieved without undermining crucial climate targets and nature protections.’
Rosie added: ‘The green economy is growing fast, and with greater government support it could expand even quicker. It needn’t be a question of growth or the environment when we can have both – especially when the green economy is outpacing other sectors.’
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