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Rachel Reeves to tell Labour MPs to back growth strategy

Rachel Reeves to tell Labour MPs to back growth strategy Rachel Reeves to tell Labour MPs to back growth strategy

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Rachel Reeves will on Monday call on skeptical Labor MPs to back her plans to boost the UK economy, including a highly controversial proposal to expand Heathrow Airport.

The Chancellor is facing criticism from some in her party for allegedly siding with companies at the expense of consumers and supporting the construction of a third runway at Britain’s busiest airport, amid fears that it may affect the government’s environmental goals.

But Reeves will seek to take on her critics when she meets parliamentary Labor on Monday, telling MPs that without growth she will not be able to fund the improvements in public services they want.

Reeves, who met investors at the World Economic Forum in Davos this week, is scheduled to spend the next two days meeting CEOs to try to convince them she has a credible growth strategy.

Many business leaders fear that its policies have contributed to the stagnation of the economy.

And on Sunday, Reeves actually confirmed she would support building a third runway at Heathrow when she delivers her ‘Growth’ speech on Wednesday, insisting the aviation industry is becoming greener.

Asked about claims by London Mayor Sir Sadiq Khan that the policy would target clean air and net zero targets, Reeves said: “A lot has changed in terms of aviation.”

London Mayor Sir Sadiq Khan and environmental groups oppose the expansion of Heathrow Airport © Peter MacDiarmid / Shutterstock

She told the BBC’s Laura Kuenssberg that more sustainable aviation fuel was becoming available, and that “a third runway would mean that instead of circling London, flights could land at Heathrow.”

Reeves said she had already approved the expansion of London City and Stansted airports, and was also expected to approve on Wednesday the expansion of Gatwick and Luton airports, representing a massive expansion of London airport capacity.

A third runway was first proposed by the last Labor government in 2003 on economic grounds, but subsequent Conservative administrations have tried and failed to develop the scheme.

Khan and environmental groups have long opposed this, pointing to the UK’s legally binding target to reach net-zero carbon emissions. But Energy Secretary Ed Miliband, who threatened to resign over the issue during Gordon Brown’s government, said this week he would not leave office if the third runway was approved.

Paul McGuinness, head of the No Third Runway coalition, said: Expansions at other London airports undermine the case for Heathrow’s uniquely complex and expensive third runway, making it a riskier, if not uninvestable, proposition.

Left-wing Labor MPs are also concerned that Reeves is tilting the regulatory landscape in favor of big business and away from consumers, with one saying: “She is throwing herself at big business.”

But the Chancellor insisted on Sunday that without some radical changes, Britain will not have enough growth and that the government will fail to meet its target of 1.5 million new homes in this Parliament.

“Too often the answer to new development has been ‘no.’ “But that is an attitude that has stunted economic growth and left working people worse off,” she added. “I don’t think low growth is our destiny.”

Reeves announced new plans to speed up the construction of new homes near commuter train stations, as part of reforms under a new Planning and Infrastructure Bill.

The Treasury said the new rules will ensure that when developers apply for acceptable types of schemes in key areas – such as nearby commuter transport hubs – the default answer will be ‘yes’.

CGI images of Old Trafford redevelopment
CGI images of Old Trafford redevelopment © Manchester United

Reeves also supported a regeneration project around Manchester’s Old Trafford stadium, which was sponsored by Greater Manchester Mayor Andy Burnham.

The Treasury said it sees “the new housing, commercial and public spaces as a shining example of the bold pro-development model that will drive growth across the region”.

Manchester United have plans to rebuild or redevelop Old Trafford stadium, which city leaders claim could lead to one of the UK’s “largest ever urban regeneration projects”.

The Premier League club will decide by the end of this season whether to build a new 100,000-seater stadium, create the country’s largest stadium, or modernize and expand the existing stadium.

Burnham described the proposal as the “biggest urban regeneration opportunity” since the 2012 London Olympics.

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2025-01-26 12:30:00


#Rachel #Reeves #Labour #MPs #growth #strategy

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