Harriet Sinclair
Heathrow expansion latest: Sadiq Khan threatens to challenge third runway plans
Reeves made an announcement on Heathrow during a major speech outlining Labour's plans to deliver economic growth.
Updated
London mayor Sadiq Khan has said he is opposed to plans to expand Heathrow Airport, after chancellor Rachel Reeves confirmed the government supported a third runway at the airport.
In a speech outlining her plans to boost economic growth on Wednesday, Reeves said: “I can confirm today that this government supports a third runway at Heathrow and is inviting proposals to be be brought forward by the summer."
She said that any proposal would be line with the UK's "legal, environmental and climate objectives”.
But Khan immediately responded with a post on social media that confirmed he remained opposed to the plans, also outlining his concerns over the environmental impact of a third runway, as well as the potential disruption it would cause local residents.
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Other critics of the Heathrow expansion have previously warned the plans are in conflict with the UK’s environmental commitments. Labour donor Dale Vince, the boss of energy company Ecotricity, said any expansion of the airport would be a “mistake”.
Live coverage from Yahoo News has finished. Read below for a roundup of the day's events, as they unfolded:
LIVE COVERAGE IS OVER65 updates
Five key announcements revealing what Rachel Reeves' growth plans mean for you
Rachel Reeves has delivered a wide-ranging speech detailing Labour’s plans to promote new developments across the UK. Pledging projects which aim regenerate areas from north to south, the chancellor aimed to promote a central message of economic growth.
Much of her speech focused on plans to invest in new infrastructure projects, which range from airport expansion, to train lines, and a football stadium. Central to the government’s plans are new developments in the area between Oxford and Cambridge, aiming to boost business investment in the area.
Read the full story from The Independent.
- Harriet Sinclair
Business groups welcome Reeves’ growth plans but remain ‘concerned’ about Budget
Chancellor Rachel Reeves at a speech on economic growth at Siemens Healthineers, in Eynsham, Oxford. (AP) Business groups and economists have said chancellor Rachel Reeves’ latest plans to grow the economy are welcome, but that measures in the October Budget will still weigh on companies.
Ms Reeves announced plans to turn Oxford and Cambridge into “Europe’s Silicon Valley” with a raft of housing and infrastructure development in the area.
And she said the government is backing a new third runway at Heathrow Airport, adding that she wants “proposals to be be brought forward by the summer”.
Read the full story from PA.
- Harriet Sinclair
Heathrow third runway: A complete timeline of events leading up to proposed expansion
The government plans to “ensure a third runway is delivered in line with our legal, environmental, and climate objectives” by conducting a “full assessment” through the Airport National Policy Statement after soliciting proposals through the summer.
According to Rachel Reeves, the government anticipates that private money will cover any related surface transportation expenses related to the development of the third runway.
The expansion of the west London airport has been long-running saga so here’s a breakdown of key events you need to know about.
Read the full story from The Standard.
- Harriet Sinclair
Ed Miliband snubs Reeves speech unveiling controversial Heathrow plans
Ed Miliband did not attend Rachel Reeves's speech. (Getty Images) Ed Miliband skipped Rachel Reeves’s speech announcing support for a third runway at Heathrow in an apparent snub to the plans.
The Energy Security Secretary, who threatened to resign over expansion of the airport in 2009, was not among the cabinet ministers present.
Liz Kendall, the Work and Pensions Secretary, Jonathan Reynolds, the Business Secretary, Steve Reed, the Environment Secretary, and Heidi Alexander, the Transport Secretary, were all in the audience.
A source close to Mr Miliband, asked to explain the absence, said he had “meetings” but did not give specifics.
Read the full story from The Telegraph.
- Harriet Sinclair
Reeves hails opportunity of net zero but faces criticism from green campaigners
Rachel Reeves has insisted “net zero is the industrial opportunity of the 21st century” as she set out plans to boost growth in a slew of sectors.
But her backing for a third runway at Heathrow and road schemes, as well as pledges to reform environmental protections as part of a bid to get homes and infrastructure built, drew an immediate backlash.
In her speech, the Chancellor pointed to green investments by the National Wealth Fund, including £65 million for Connected Kerb to expand their electric vehicle-charging network across the UK and £28 million in Cornish Metals to provide raw materials for solar panels, wind turbines and electric vehicles.
Read the full story from PA.
- Jasmine Andersson
Building 1.5 million homes will 'make a much bigger difference' to Brits
A leading think tank on improving living standards said the government should focus its plans more on the 1.5 million homes it intends to build across Britain.
Greg Thwaites, the research director at the Resolution Foundation, said: "While attention has centred around building a third runway at Heathrow, successfully building 1.5 million homes across Britain will make a much bigger difference to people’s living standards, and to growth – if those homes can be built in areas with high economic potential.
While the chancellor's speech was "concrete," Thwaites said it "lacked a Euro-vision".
“That gap will need to be filled given the huge potential gains from a closer trading relationship with the EU, and an ambitious services-led trade strategy. But achieving either will require taking even tougher decisions," he added.
Uncertain if MPs can vote on Heathrow
Planes come into land at Heathrow airport over nearby housing (Getty Images) Downing Street was not certain about whether MPs will be given a vote on the plans to expand Heathrow.
Asked if there would be a vote, the Prime Minister’s official spokesman said: “There are various steps in the process. We obviously now have asked Heathrow to provide and come forward with proposals, and once those proposals are submitted then the overnment will move at speed to review the airports national policy statement.
“That provides the basis for decision-making on granting development consent for the new runway at Heathrow to ensure that it is line with our environmental and climate obligations. We need to get through those stages of the process.
“The transport secretary will consider the proposal in the first instance and then we will update on any parliamentary procedure in the usual way.”
Ministers have asked for proposals from Heathrow Airport to be presented to them by June.
- Jasmine Andersson
'Ideology around carbon emissions' won't stop Heathrow expansion
Conservative MP and former cabinet minister Oliver Dowden said that he welcomes the news on the government's Heathrow expansion.
He asked for assurances that the project "won't be stymied by an absolutist approach with an ideology around carbon emissions."
Jones said the government wants to get building again and working on the projects "blocked by the last administration."
- Jasmine Andersson
Expansion 'delivers minimal growth at the expense of the environment'
The Liberal Democrats' Daisy Cooper is now speaking.
She said her party does not back airport expansion because it "delivers minimal growth at the expense of the environment".
She asked: "In the midst of the climate emergency, can the government give a cast-iron guarantee that the so-called fresh carbon budget will not water down climate targets?"
Jones responded that all of the plans will be in line with the government's legal obligations.
- Jasmine Andersson
Comments from business leaders 'speak for themselves'
Mel Stride has asked if Labour can commit to shaving £12bn off the welfare budget.
He said that many of the government's measures are "reheated".
Jones said that in the last six months, the government has done more than the Conservatives did in 14 years.
"The comments from business leaders and investors speak for themselves.
"The Labour Party makes no secret of the fact that we like to support people into work.
"The real truth is that under the last government, too many people were waiting at home, sick, unable to get an NHS appointment, or access to mental health services.
"We will work for speed to get them the work that they deserve."
- Jasmine Andersson
'The damage is already being done'
Mel Stride challenged Labour on its growth plan (Parliament TV) Shadow chancellor Mel Stride has called Labour's growth plans a "hasty mañana moment of a promise of a better tomorrow."
"We need action now to reverse the grievous damage of this Chancellor," he said.
"Why did the government deliver a budget that the independent OBR said would lead to lower growth, higher inflation rates and cost jobs?
"Going for growth in the 2030s means nothing to the businesses that have already stopped hiring.
"The damage is already being done," he added.
- Jasmine Andersson
'We have taken the tough decisions' to encourage growth
Jones continues: "In just six months, we have taken the tough decisions to make that possible.
"We are taking on the responsibility of a government that delivers real change people, no longer the hollow promises of the Conservative party.
Now, we must go further and faster, so the next generation and the generation after that will have the opportunities they deserve."
- Jasmine Andersson
Heathrow expansion 'will be financed by private capital'
Jones has echoed Reeves's words on financing the third runway project.
Once proposals for expanding the runway been received, the government will take forward a full assessment in the summer.
He told the Commons: "We want the scheme to be value for money, and will be financed by private capital, as well as be sustainable and low carbon."
A third runway could boost GDP by .43% over the next 25 years, with 60% of the boost going outside of the area of the south east, he added.
- Jasmine Andersson
Regional investment 'hard-wired into spending review'
Darren Jones MP speaks (Parliament TV) There will now be a ministerial statement on growing the UK economy, delivered by Treasury minister Darren Jones.
He said: "By helping businesses to invest and create wealth, they can create jobs and opportunities that will change lives.
"There have been huge private sector investments in this country since this government came into power.
"We will create an active and strategic state, to deliver for British people in every corner of the country."
He said regional transport investment will be "hard-wired into the spending review."
- Jasmine Andersson
Watch: 'We're not taking lectures from them'
The PM has responded to opposition leader Kemi Badenoch's claim that the Labour government is destroying growth following Rachel Reeves’ announcements earlier today on boosting the economy.
He responded: "We're not taking lectures from them".
Watch the clip from prime minister's questions below.
"We're not taking lectures from them"
The PM responds to Kemi Badenoch's claim that the Labour government is destroying growth following Rachel Reeves’ announcements to boost the economyhttps://t.co/oTWzVseGLe
📺 Sky 501 and YouTube pic.twitter.com/lrLSoMmrtG— Sky News (@SkyNews) January 29, 2025
- Jasmine Andersson
Stronger economy 'will make little difference' to those in 14.3 million in poverty
More than 1 in 5 people in the UK (21%) were in poverty in 2022/23 – 14.3 million people (PA) A stronger economy is likely to make little difference to the poorest UK households unless there is targeted support to tackle poverty, a report has warned.
Anti-poverty charity the Joseph Rowntree Foundation (JRF) said it is “deeply unjust” to expect struggling families to wait for wider economic growth, and re-emphasised its plea for the two-child limit on benefits to be scrapped.
Keir Starmer has previously indicated he would like to scrap the limit but claimed that the government cannot currently afford to do so, and has repeatedly stressed the focus on growing the economy.
Read the full story from PA.
- Jasmine Andersson
Khan: Government and I won't agree 100% of the time
Sadiq Khan said it's okay to not agree 100% (REX) London mayor Sadiq Khan has expanded on his view on the Heathrow expansion, and said that while he doesn't support their plans and intends to challenge them, he accepts they are "not going to agree 100% of the time."
Speaking to BBC Radio London, the mayor said that he was opposed to the expansion on the grounds of noise, air pollution and climate change targets.
He said: “Notwithstanding my support for growth, I don’t support a new runway at Heathrow.”
“Although I support, of course, many of the policies of the government, I don’t support a policy of them supporting a new runway at Heathrow and I think that’s perfectly normal in a pluralist society.
"You’re not going to agree 100% of the time with anybody even though the government are people that I fully support and fully respect.”
- Jasmine Andersson
Starmer defends business prospects
At PMQs, Starmer is being challenged by the leader of the opposition, Kemi Badenoch, on when Labour's big economic plans will taken effect.
"The ONS say we have the highest investment for 19 years," Starmer said.
"PWC say the UK is the second-best place to invest in the world.
"There's more to do... but we're not taking lectures from them," he added.
- Jasmine Andersson
Starmer says government is 'moving further and faster to boost growth'
Keir Starmer said he will be meeting with key players in the government's new economic plans "later on today".
Speaking at prime minister's questions on the announcements earlier today, he said: "We're removing the barriers to investment, supporting innovation, and moving further and faster to boost growth."
- Jasmine Andersson
Heathrow expansion 'most irresponsible announcement since the Liz Truss budget'
Sian Berry has criticised the expansion (PA Images via Getty Images) The Greens have doubled down on their criticism of the Heathrow expansion plans, dubbing it “the most irresponsible announcement … since the Liz Truss budget”.
Sian Berry said: “The chancellor talked about the ‘costs of irresponsibility’ but expanding airports in the face of a climate emergency is the most irresponsible announcement from any government I have seen since the Liz Truss budget.
Describing the potential approval of expansions at Gatwick and Luton airports as “nothing short of reckless”, Berry added that the increased carbon emissions from the projects would “cancel out the benefits of Labour’s keystone clean energy plan”.
The MP for North Herefordshire said: “The chancellor’s stated goal today is ‘raising living standards in every part of the UK’, but more and bigger airports will serve only the very richest aviation bosses and the most frequent flyers whose wealth doesn’t help people’s daily lives get better.
“Tackling inequality and building a greener future should go hand in hand. That must mean investment in warmer homes, green energy and the local transport people use every day, not these bleak proposals.”
- Jasmine Andersson
Heathrow 'must deliver real opportunities' for working people
Sharon Graham speaks during a demonstration (SOPA Images/LightRocket via Getty Images) The leader of the UK's biggest union has said the Heathrow expansion needs to be "about more than just infrastructure" to benefit working people.
Unite general secretary Sharon Graham, who represents 1.2 million workers, said: “Rachel Reeves is right our economy needs to grow but her dash for growth will be undermined without joined-up thinking, a coherent industrial strategy and ensuring that workers directly benefit.
“With workers facing economic uncertainty, these projects must deliver real opportunities for highly-skilled, well-paid employment that puts money back into working families and local communities.”
- Jasmine Andersson
The 79-year history of the Heathrow expansion
Heathrow was initially intended to have six runways (PA Images via Getty Images) It's been under heated discussion for the last decade — but Heathrow Airport's expansion plans are nearly 80 years old.
In 1946, Heathrow was tabled to have six runways under its original development plan, which would be laid out in a Star of David pattern, according to airporthistory.org.
Its second plan saw that figure bumped up to nine runways, with the demolition of two nearby villages, Harlington and Sipson — both of which still exist today.
In the end, the plans were shelved as they were considered too costly and unnecessary.
- Jasmine Andersson
Which part of the UK will be 'the Silicon Valley of Europe'?
Keir Starmer and Rachel Reeves host an investment roundtable discussion with the BlackRock CEO (POOL / AFP) Chancellor Rachel Reeves is set to announce plans to create the UK’s own Silicon Valley in a major speech on growth on Wednesday.
The initiative aims to fuel innovation and economic growth as prime minister Keir Starmer promised to clear regulatory obstacles to ensure the project's success.
Writing in The Times, Starmer criticised the “morass of regulation that effectively bans billions of pounds” of investment, describing “thickets of red tape” that have “spread through the British economy like Japanese knotweed”.
Reeves said that Britain has been “held back” and “accepted stagnation” in a major economic speech hailing the project.
Read the full story on Yahoo News.
- Jasmine Andersson
Virgin Atlantic offers muted support for Heathrow plans
UK airline Virgin Atlantic said it backs the Heathrow plans — but only if there is "fundamental reform to the flawed regulatory model".
A Virgin Atlantic spokesperson said: “Heathrow is critical national infrastructure and the UK’s only hub airport, enabling connectivity and trade to global markets, yet it remains the world’s most expensive airport with a service that falls short.
“We are supportive of growth and expansion at Heathrow, if, and only if, there is fundamental reform to the flawed regulatory model to ensure value for money for consumers, affordability for UK plc and support for a competitive UK aviation industry.”
In her speech earlier today, Reeves said she is looking into the regulations that hinder industries like aviation.
Conservatives 'will continue to back business'
Mel Stride called Reeves 'the anti-growth chancellor'. (Future Publishing via Getty Images) Shadow chancellor Mel Stride has attacked Labour's plans for expansion, dubbing Reeves an "anti-growth chancellor."
He said: “The biggest barriers to growth in this country are Rachel Reeves, Keir Starmer and their job-destroying budget – and nothing in the chancellor’s speech proved otherwise.
“What’s worse, the anti-growth chancellor could not rule out coming back with yet more tax rises in March.
“This is a Labour government run by politicians who do not understand business, or where wealth comes from. Under new leadership, the Conservatives will continue to back businesses and hold this government to account.”
- Jasmine Andersson
Rachel Reeves gives green light to Heathrow runway expansion
Reeves delivering the speech (POOL/AFP via Getty Images) Chancellor Rachel Reeves has confirmed the government's backing for a new runway at Heathrow Airport.
In a major set piece speech setting out her plans to revitalise the UK's economy, the Chancellor said ministers “cannot duck the decision any longer”.
In the wake of the coronavirus pandemic, bosses at Heathrow, Britain's busiest airport, had warned a fall in passenger numbers had been so steep expansion plans could have been put back by a decade.
But a quicker than expected recovery has reportedly seen capacity strained "to the maximum" last year, prompting ministers to re-visit the proposals.
Read the full story on Yahoo News.
- Jasmine Andersson
GMB union welcomes expansion
General trade union GMB has backed the Chancellor's decision to green light the Heathrow airport expansion, saying it has "finally been cleared for take-off".
“We welcome the Government’s decision and the thousands of good, unionised jobs and apprenticeships the project will create.
“The project represents a huge boost for construction skills in this country, which will be vital for future infrastructure projects.”
- Jasmine Andersson
Pound sterling rose after Heathrow airport expansion announcement
The pound was up on the dollar when the announcement was made (Yahoo Finance) While Reeves is facing a barrage of criticism over the Heathrow airport expansion, the markets seem to have responded well to the news.
The pound was marginally up on the dollar and rose when the announcement on building a third runway was made, Yahoo Finance graphics show.
- Jasmine Andersson
'Can you spot Labour's climate betrayal?'
The Green Party have rubbished the government's plans to expand Heathrow, asking "who exactly" it benefits.
Rachel Reeves has confirmed the Government supports Heathrow expansion.
Analysis from @NEF shows airport expansion is unlikely to result in 'economic growth' and it would blow away the UK's climate commitments.
Who exactly does this benefit? pic.twitter.com/hkMxRGFIhQ— The Green Party (@TheGreenParty) January 29, 2025
In the post on X, the party asked: "can you spot Labour's climate betrayal?"
- Jasmine Andersson
What would the proposed expansion look like?
A map of the proposed expansion (PA graphics) Chancellor Rachel Reeves has given her support for a third runway at Heathrow Airport.
In a speech in Oxfordshire on growth, she said the west London airport’s expansion is “badly needed” because “for decades its growth has been constrained”.
Heathrow’s plan to build a third runway received parliamentary approval in June 2018, but has been delayed by legal challenges and the coronavirus pandemic.
Read the full story from PA.
- Jasmine Andersson
Sadiq Khan 'remains opposed' to Heathrow expansion
Sadiq Khan said he remains opposed to Heathrow airport expansion. (PA Images via Getty Images) Responses to the expansion of Heathrow airport and the building of a third runway have already started pouring in — including London mayor Sadiq Khan.
In a post on X shortly after the speech, he wrote: "I remain opposed to a new runway at Heathrow airport because of the severe impact it will have on noise, air pollution and meeting our climate change targets."
He said he will "scrutinise carefully any new proposals that now come forward from Heathrow, including the impact it will have on people living in the area and the huge knock-on effects for our transport infrastructure
- Jasmine Andersson
Reeves has left the podium
Reeves has now left the podium and finished taking questions from journalists.
- Jasmine Andersson
'Could safety be put at risk by deregulation?'
A Mirror journalist is next.
She said that the Grenfell Tower tragedy was said to be down to deregulation.
How can you ensure that deregulation doesn't come at the expense of safety?
Reeves said: "We made commitments to families to learn the lessons after what happened.
We will not renege on those commitments," she added.
- Jasmine Andersson
'Do you regret talking down the economy?'
Heather Stewart at the Guardian said the chancellor has struck "a very optimistic tone", in contrast to the "gloom" of last year.
"Do you regret that gloomy tone and talking down the economy?"
Reeves replied: "I did face a real challenge when I became chancellor. I didn't shy away from those decisions.
The consequences of doing nothing and allowing our public finances to go unchecked would have been even greater.
"The Bank of England has cut interest rates twice since we've been in office.
"Wages are rising at twice the rate of inflation.
"I am upbeat and optimistic about our country's prospects. Who wouldn't be?" she added.
- Jasmine Andersson
'Will you publish your tax return?'
Journalist Christopher Hope from GB News has asked Rachel Reeves if she will reduce net migration, and publish her tax return.
"We want to attract talent, but we have made our commitment to make net migration go down."
She jokes: "This is a good reminder to get your tax returns in," and said, like other chancellors, she will not be publishing her return.
- Jasmine Andersson
'Can you rule out further taxes on business?'
Andy Bell from 5 News said that business taxes imposed in last autumn's budget could hinder growth.
"Can you rule out further taxes on business?" he asked.
Reeves said: "I will never play fast and loose with finances" because ordinary people pay the price.
"The CBI says the plans are smart. They can see that this is a government that is getting on with things."
"I am not going to right the wrongs of five years of budgets with one budget," she added.
- Jasmine Andersson
'How do we judge the success?'
A reporter from Sky News highlights that some of these plans will take a while to show that they've paid off.
"What are we looking to to judge success?" they ask.
Reeves replies: "We are trying to crack on with things. Alongside the big announcements we are making today, we are making changes so we can get on and deliver, not just talk about them."
- Jasmine Andersson
'Are these decisions anywhere near enough?'
Reeves is now taking her first question from Chris Mason at the BBC.
He asks if "these decisions are anywhere near enough".
Reeves replies: "We need to go further and faster. The announcements I set out today... show this is a government with ambition."
"We are systemically removing the barriers that have held back our growth performance."
She added that global shocks "seem to affect the UK more", that's why we need "a more resilient economy", which she said these plans will achieve.
Reeves wraps up
Expanding Heathrow will make the UK "the world's best place to do business", says Reeves.
She said: "The prize on offer if we do this is immense.
"It will mean a boost to the next generation, with more opportunities than the last.
"Wealth will be shared in every part of Britain."
These decisions will "end the era of low expectations".
That's all for Reeves's speech.
- Jasmine Andersson
Reeves announces third Heathrow runway
Rachel Reeves announces her plans for the UK economy. (Reuters) Chancellor Rachel Reeves confirms her support for a third runway at Heathrow, inviting proposals to be assessed over the summer.
This will ensure that the expansion is "further value for money" and delivered within its "legal, environmental and climate objectives".
She added: "As our only hub airport, Heathrow is in a unique position. We cannot duck the decision any longer."
The decision will "increase exports, boost investment and make the UK more connected".
"Now, the case is stronger than ever."
- Jasmine Andersson
Reeves speaks on Heathrow third runway expansion
Reeves now comes onto the building of a third Heathrow runway, a decision that has been "delayed, avoided and ducked" by successive governments.
Giving Heathrow a third runway "has run on for decades".
"Heathrow is at the heart of the UK's openness as a country, connecting us to markets all over the world.
"A quarter of all long-haul flights go from Heathrow," she continued.
Reeves said a new runway could create 100,000 jobs.
Citing union support, she said: "A third runway is badly needed."
- Jasmine Andersson
£7.9bn in reservoirs
Reeves has also announced a £7.9bn investment in reservoirs, including one in the area she is speaking from today.
The investment for the next 5 years to improve our water infrastructure and provide a foundation for growth," Reeves said.
This includes nine new reservoirs, such as the new Fens Reservoir serving Cambridge and the Abingdon Reservoir near Oxford.
- Jasmine Andersson
Launch of the 'Oxford-Cambridge growth corridor'
Reeves has now turned her attention to work "in her current location".
She has criticised the length of travel time between Oxford and Cambridge, where it takes two hours to travel to Oxford and Cambridge by train.
"There is a lack of affordable housing right across the region.
"The demand is there, but there are too many supply side constraints on economic growth here."
Now, there will be a creation of an Oxford-Cambridge growth corridor.
This includes new rail services between Oxford, Cambridge and Milton Keynes.
Reeves said there will be "vibrant new and expanded communities along the route", adding that she had received 18 proposals for new towns along the railway.
- Jasmine Andersson
Creation of 'the South Yorkshire Airport City'
Doncaster Sheffield Airport closed in November 2022. (PA) Reeves said that "the last government stood by as Doncaster-Sheffield was closed by its owner. It now sits idle.
"I can announce today, that we will work with Doncaster Council and the Mayor of South Yorkshire to create the South Yorkshire Airport City."
- Jasmine Andersson
Green Book review pledged
Following feedback from the Metro Mayors, Reeves has pledged to review the Green Book, "to see how it is providing objective, transparent advice to the rest of the country.
"That means investment in all regions is given a fair hearing," she added.
- Jasmine Andersson
North of England to get infrastructure boost
Reeves has now turned her attention to the north of England.
She wants to focus on infrastructure and investment in the area.
"If we can improve connectivity around towns and cities across the north of England, we can improve their true potential," she said.
This includes the Transpennine Route Upgrade, a multi-billion pound project to connect towns and cities from Manchester to York.
The government will also deliver railway schemes to improve journeys across the north, including electrifying the Wigan to Bolton line.
A ten-year infrastructure strategy will be coming in the next few months, she added.
- Jasmine Andersson
2.6% GDP spend on growth
"We will work with the private sector to deliver the infrastructure the UK desperately needs," Reeves said, including "alleviating severe congestion at Felixstowe".
This will "drive growth and deliver value for money for taxpayers" she said.
New investment rules will mean the government "doesn't just count the costs of investment, we count the benefits, too."
"2.6% GDP on average will be invested compared to 1.9% from the previous government," Reeves said.
"This is £100bn capital spending, meaning better housing, better transport links, and clean energy."
She said the IMF had recently upgraded the UK's growth prospects, projecting it to have the faster growth of any major economy this year.
- Natalie Marchant
'Growth is our national mission'
Watch chancellor Rachel Reeves speech
Growth is our national mission, to get more money in people's pockets. We're going further and faster to get Britain building, unlocking critical national infrastructure projects and stopping the blockers who have stifled growth for too long. https://t.co/3XnogLUeu3
— Rachel Reeves (@RachelReevesMP) January 29, 2025
- Jasmine Andersson
Millions in investments announced
Reeves has announced further national wealth fund investments.
£65m for the electric vehicle charging company Connected Kerb, to expand its network.
Millions will also be invested in Cornish Metals, for electric vehicles, solar panels and wind turbines.
She will also enable "marine protected areas" across the UK to build safe business, with £30bn investment in clean power.
- Jasmine Andersson
'Britain should be the best place in the world to be an entrepreneur'
Reeves said that "Britain should be the best place in the world to be an entrepreneur".
That's why she extended the enterprise scheme for another 10 years.
She echoes the promise she used in Davos last week: "I am determined to make Britain the best place in the world to invest."