Today, the chancellor announced a number of growth plans that could boost UK economic growth by as much as PS78 billion.
Rachel Reeves endorsed plans to build Heathrow Airport’s third runway, which could generate 100,000 jobs.
She also announced plans to build a new rail connection between Oxford and Cambridge, which will create a “growth corridor” for research between both universities. She added that the region could become “Europe’s Silicon Valley”.
Thirdly, the redevelopment Old Trafford will see new housing and commercial development as well as a new stadium.
Reeves stated: “Britain has a huge potential.” The country is a strong community with local business at its heart.
We are leading the way in some of the most exciting advances around the globe, such as artificial intelligence and the life sciences. “We have great companies here that deliver jobs and investment to Britain.”
She said that “low-growth is not our fate… without a working-class government.” “Willing to make the right decisions to change the course of our country for the better.”
The Oxford-Cambridge railway link will be accompanied with investment in affordable housing. This includes a development of 4,500 homes near Cambridge, as well as community spaces and amenities.
The chancellor is also expected to rubber-stamp the proposal for a large-scale Innovation Hub in Cambridge City Centre.
The Science Minister Lord Patrick Vallance stated: “The UK is well-positioned to duplicate the success of Silicon Valley and the Boston Cluster, but has for far too long been limited by short-termism.
The Plan for Change of this government will put an end to defeatism. I am looking forward to working with leaders in the area to realize the potential of the Oxford-Cambridge Corridor by building on existing strengths, including those in academics, life sciences and semiconductors, as well as AI, green technology, and green technologies.
Together we will build the partnerships and infrastructure needed to connect this region’s academics, investors, and businesses so we can boost our growth, deliver innovation, and create new job opportunities that benefit all of us.
Paul Johnson, the director of the Institute for Fiscal Studies warned that it would take “time, and often many years” for the growth policies to be implemented by the government.
The government has a right to be focused on this issue and to begin now. He said that their successors may reap the benefits.
Mel Stride, the shadow chancellor of the UK, accused the government plans as being “hurriedly thrown together”.
The biggest obstacles to growth are Rachel Reeves and Keir starmer’s job-destroying budget.
“Hastily thrown together announcements about growth in 2030 will not help businesses that are cutting jobs now.”
Ben Willmott is the head of public policies at the CIPD. He welcomed investments in long-term economic growth but urged government to help businesses attract and develop skills to achieve these goals.
He added: “This involves ensuring that the measures to enhance employment rights are carefully developed with employers, and implemented so as to not act as a barrier to hiring or increasing participation in the labour market.
“It is also crucial that the plans for a new Growth and Skills Levy and changes to the Skills Policy are developed as quickly as possible in order to help employers develop skills and capabilities needed to innovate, adapt new technology and grow.
“For instance, it is urgent to increase the number apprenticeships available for young people and to reverse the long-term drop in employer investment in education in order to address the lack of technical skills within key sectors.
The green energy sector must develop the necessary skills to help it achieve net zero.
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