Rachel Reeves has endorsed the addition of a third runway at London's Heathrow Airport as part of a new strategy to stimulate the United Kingdom's sluggish economy.
In a speech addressing business leaders, the chancellor highlighted that the expansion of Heathrow, which has faced delays due to environmental concerns, would position Britain as the world's most well-connected place for conducting business.
Reeves expressed her intention to have a planning application approved before the upcoming election. She also supported developments at Luton and Gatwick airports, along with a "growth corridor" linking Oxford and Cambridge, which she proposed could become Europe's Silicon Valley.
Although the Conservatives praised the proposals, Kemi Badenoch, the party leader, accused the government of adopting ideas from their agenda. Badenoch criticized the Employment Rights Bill, warning that it would impose additional burdens on businesses and dampen prospects for growth.
Reeves, in her address in Oxford, aimed to instill optimism and confidence in the economy, emphasizing the need to address the recent stagnation in growth. She refuted Conservative claims that her measures were detrimental, arguing that raising employers' National Insurance was essential for stability.
The chancellor conveyed her commitment to furthering economic recovery, emphasizing the need for bold decisions to unleash the UK's potential and drive progress. She urged for proactive measures to transform the country's future positively.
Reeves articulated the government's prioritization of economic growth to underpin its broader objectives like enhancing public services and living standards, as well as securing electoral success.
While asserting that technological advancements in aviation would enable the construction of a third Heathrow runway within carbon reduction limits, Reeves faced opposition from environmental activists and London's Mayor Sadiq Khan.
In an interview, Reeves reiterated her aspiration for prompt approval of the Heathrow expansion prior to the next election, envisioning tangible progress on infrastructure projects like the East-West rail connection between Oxford and Cambridge.
Reeves anticipated significant economic gains from the Oxford and Cambridge development corridor, projecting a substantial boost to the UK economy by 2035.
Various initiatives were announced, including the regeneration of Old Trafford and plans for reinvigorating airports in Doncaster/Sheffield and East Midlands, garnering praise from trade unions and industry stakeholders.
Reeves advocated for streamlining the planning process to accelerate infrastructure projects, proposing reforms to enhance efficiency.
The government's review of infrastructure investment guidelines aimed to ensure a more balanced distribution of resources, addressing past biases favoring already prosperous regions in the south.
The opposition raised concerns about the impact of the Employment Rights Bill on businesses and growth, while the prime minister defended the legislation as beneficial for workers and economic progress.
Diverse opinions surfaced, with the SNP criticizing the speech for overlooking Scotland's interests and advocating for alternative economic approaches.