Rachel Reeves has trumpeted to the world that Britain is a “safe place to invest” after political turbulence of recent years discouraged some businesses from doing so.
In her first major speech as Chancellor on Monday, she sought to send a message resounding around the globe that “in an uncertain world, Britain is a place to do business”. The new Labour Government is making boosting economic growth its number one priority as it seeks to bring in extra billions to improve public services.
Speaking to business chiefs at the Treasury, Ms Reeves explained how she wants to rev up Britain’s economy domestically, including by planning reforms. But she also had a message to reach far beyond the UK’s shores.
“To investors and businesses who have spent years doubting if Britain is a safe place to invest, then let me tell you: after 14 years, Britain has a Government that respects business, wants to partner with business and is open for business,” she said. “In an uncertain world, Britain is a place to do business.”
Investors’ confidence in ploughing billions into the UK was knocked by Liz Truss’ chaotic administration — including the “mini-Budget”, Rishi Sunak’s scaling back of the HS2 project and an apparent willingness by past administrations to flout international law to deal with problems sparked by Brexit and the “small boats” Channel crisis.
Ms Reeves said her economic blueprint would be based on stability, investment and reform and that the new Government, with a 174 Commons majority, would be ready to “risk short-term political pain to fix Britain’s foundations”.
She unveiled a major shake-up of the planning system to build 1.5 million more homes, including more social housing, in the next five years and other new infrastructure projects.
It included reforming the national planning masterplan for Britain to make it more “growth focused”, restoring mandatory housing targets, and ending the “absurd” ban on new onshore windfarms and moving to make it easier for such developments so these decisions are taken nationally not locally.
Priority will be given to energy projects in the planning system. A new task force will be set up to accelerate stalled housing projects including in Liverpool docks and Worcester parkway. Town halls will get 300 more planning officers to speed up decisions.
Levelling-up Secretary Angela Rayner will be ready to intervene in the economic planning system to ensure that the “benefit of development” will be a central consideration. Two planning applications are already being looked at, for data centres in Buckinghamshire and Hertfordshire.
Mayors will be told that any investment projects with important planning considerations should be notified to Cabinet ministers. Local planning authorities have been told to review green belt boundaries to “prioritise” new homes on brownfield sites and “grey belt”.
Given the threat of a Nimby (not in my backyard) backlash, Ms Reeves said local communities will still get a say on where developments are built, but building must happen. She said: “It will still be in the first instance up to local communities and local authorities to decide where housing is built, but we will bring back those mandatory housing targets...it will be up to local communities where housing is built but it has to be built.
“If the answer is always ‘no’ we will continue as we are. Continuing as we are means living standards continuing to decline. And it means public services continuing to deteriorate. I’m not willing to accept that status quo. So we’ve got to get Britain building and we’ve got to ensure that families can get on the housing ladder.”
The Chancellor said that she would shortly present to Parliament an analysis of the state of the public finances before a Budget in the autumn.
Former Bank of England governor Mark Carney will also deliver a report on how to bring in billions more in private sector investment to match public sector money.
Meanwhile, Home Secretary Yvette Cooper, meeting police officers in Lewisham, said there is not going to be a “quick fix” to the problem of overcrowding in prisons.
