Reeves' plans to accelerate economic growth and boost the property and construction industry

5 minutes read time

This morning the Chancellor, Rachel Reeves, delivered a speech on how the government will kickstart economic growth - giving the property and construction industry a huge boost! 

The government plans to go “further and faster” with their economic growth strategy.

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Setting out the government’s growth strategy, Rachel Reeves listed 3 key elements:

Stability – in politics, public finances, and economy.

Reform – which she highlighted would make it easier for businesses to trade, raise finance and build,

Investment – the life blood for economic growth

The Chancellor went on to highlight the government’s plans to build and reset relationships with the US and EU to drive growth and support businesses within the UK

Key areas of focus:

  • Planning reform: Reeves described the current planning process as “shockingly slow” and confirmed the government’s intention to streamline applications. She noted that reforms to environmental regulations had already come into force last week.

  • Regional infrastructure: Investment in transport and infrastructure will improve connectivity across the UK, particularly in the North of England. This includes railway upgrades and support for mass transit development in West Yorkshire.

  • Old Trafford redevelopment: The government is backing Andy Burnham’s plans to redevelop Old Trafford, creating new housing and commercial opportunities around a modernised stadium.

  • Heathrow expansion: Reeves confirmed the government’s support for a third runway at Heathrow, acknowledging it as a long-term project but inviting proposals to be submitted by the summer. The expansion has the potential to create 100,000 jobs.

  • Oxford-Cambridge growth corridor: Positioned as “Europe’s Silicon Valley,” this corridor could generate £78bn for the UK economy by 2035. Plans include new transport links between Oxford, Cambridge, and Milton Keynes, faster rail connections, and increased provision of affordable housing to attract businesses in science and technology.  There are also plans for more social infrastructure, with schools, doctors surgeries and the necessary utilities. Culham will see a data centre and significant AI growth.  Moderna, which has just completed its UK HQ in Harwell, via one of our key clients, is further commitment to the Oxfordshire region. 

Through these measures, the government aims to stimulate economic growth, improve business conditions, and enhance the UK’s global competitiveness. The Treasury said the announcements are designed to create the right conditions to increase investment in growth sectors including life sciences, artificial intelligence and advanced manufacturing. 

This is very welcomed news for the property and construction industry, which will see huge benefits across the length and breadth of the industry. 

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