Sir Keir Starmer has invoked Margaret Thatcher and vowed to slash “thickets of red tape” to clear the way for economic growth, just hours before Rachel Reeves will announce a raft of policies to try and get Britain growing again.
Ahead of PMQs later today, the prime minister said that for “too long regulation has stopped Britain building its future” and criticised the “morass of regulation” which has stunted billions of pounds of investment in the economy.
Writing in The Times he vowed to stop “overreach” by government watchdogs and said that “thickets of red tape” have “spread through the British economy like Japanese knotweed”.
It comes as the chancellor will use her first major speech since the Budget in October to signal how she can deliver the economic growth she promised during the election campaign.
She has been criticised over her policies in the first seven months of government amid speculation that Britain is on the brink of a recession.
An announcement on the expansion of Heathrow is also expected despite the threat of a backlash by Labour MPs and is also expected back a major plan to redevelop the iconic Old Trafford, home of Manchester United.
Key Points
- Reeves warned ‘it’s crunch time’ as chancellor relaunches her economic growth agenda
- NHS overspending doubles to £1.4bn as MPs accuse officials of ‘remarkable’ complacency
- White House confirms Mandelson to be accepted as ambassador
- ‘Plans to charge Netflix and Disney+ users for BBC licence fee’
Full report | Reeves warned ‘it’s crunch time’ as chancellor relaunches her economic growth agenda
08:37
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Jabed Ahmed
Our Political Editor David Maddox reports:
Labour doesn’t have a ‘doom message’, business secretary says
08:29
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Jabed Ahmed
Jonathan Reynolds has denied that Labour has a “doom message”, instead saying he has “always been optimistic”.
It comes as critics accuse the government of talking down the economy, after the government repeatedly set out the problems facing Britain and pointed to a “£22bn black hole” they claimed to have inherited from the Conservatives.
The business secretary – asked if the party realised they had gone too far with negative messaging – said: “I don't believe we had a doom message. I believe we face a difficult fiscal inheritance. We have to address that.”
Pressed on whether he regrets how much the government mentioned the “black hole” facing the public finances, Mr Reynolds said: “I regret there was a black hole.”
He added: “There are times where you face this kind of situation and you've got to address it.”
There are ‘real problems’ with proposals to build a third runway at Heathrow, Ed Davey says
08:17
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Jabed Ahmed
Ed Davey has said there are “real problems” with proposals to build a third runway at Heathrow.
It comes ahead of a major speech from Rachel Reeves today, where she is expected to announce plans for the project.
The Liberal Democrat leader said officials are “not sure whether it will bring the growth, and realising that if it brings growth, it may take quite some time”.
He said his party wants to “make sure we're taking measures to grow our economy now”.
“That's why we've put such a big emphasis on getting rid of the barriers and the costs and the bureaucracy that the Conservatives introduced for our traders”, Sir Ed added.
His comments come after a number of Lib Dem MPs – including Munira Wilson and Sarah Olney - penned a letter to transport secretary Heidi Alexander expressing concern that the airport expansion could have negative impacts on the environment and human health.
What would be the environmental impact of a Heathrow expansion?
08:11
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Jabed Ahmed
Planes emit CO2 when they burn jet fuel, which contributes to global warming.
Climate and energy website Carbon Brief says a forest twice the size of London would need to be planted in the UK to cancel out the extra CO2 emissions from expansion of Heathrow, Gatwick and Luton Airports.
The UK’s target to meet net zero CO2 emissions is 2050.
The aviation sector is largely relying on the development of sustainable aviation fuels to reduce CO2 emissions.
It is also developing aircraft powered by electricity and hydrogen, although the large-scale commercial use of these technologies remains a long way off.
Independent advisers on the Government’s Climate Change Committee recommend there should be “no net airport expansion across the UK”.
Ed Davey warns 'things are going from bad to worse' for social care
08:06
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Jabed Ahmed
Sir Ed Davey has warned that “things are going from bad to worse” for social care across the UK, accusing Labour of a “failure to act”.
While he praised the party’s decision to set up a cross-party commission on social care, he said the timetable they have set out is “just not acceptable”,
“Labour’s refusal to act quickly on social care - and actually making it worse with the rise in national insurance - I think things are going from bad to worse. I didn't think that would happen”, the Liberal Democrat leader told Sky News.
It comes after it was announced that the reforms promised by Labour will not be implemented until 2028.
“They said it's going to take at least three years. I'm afraid we can't wait. We believe this can be done this year so we can implement the changes that people need.
Sir Ed added: “It's crucial for those people who need care and their families and their loved ones. It's also crucial for the NHS because, without reforming social care, you'll never sort out the problems in our health service.”
UK will be ‘left behind’ if third Heathrow runway is not built, minister suggests
07:59
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Jabed Ahmed
The Business Secretary has said the UK “can’t afford” to be a country that “doesn’t build runways”.
Asked about the expected announcement of support for a third runway at Heathrow, Jonathan Reynolds said he would not “pre-empt” the Chancellor’s speech.
He told BBC Breakfast: “I want people to know that things that have been too difficult in the past will be focused on, will be changed, will be delivered on, by this Government.
“It’s not just about aviation expansion, there’s a whole range of things.”
He added: “We’re not going to have endless judicial reviews effectively try to second-guess democratically-elected decisions from the elected government of the day. We will follow process, but that process has got to be one that can deliver the things.
“We simply cannot afford to say we don’t build reservoirs any more, we don’t build railways, we don’t build runways. That’s not good enough, we will be left behind.”
Key dates in Heathrow expansion saga
07:54
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Jabed Ahmed
Chancellor Rachel Reeves is expected to give her support for the building of a third runway at Heathrow in a speech later this morning.
Here are of key events in the long-running saga over the past five years:
February 2020
- Campaigners win a Court of Appeal ruling which finds the Government’s decision was unlawful because it failed to take account of its own climate commitments when it approved the scheme.
March 2020
- Despite passenger numbers plummeting because of coronavirus pandemic travel restrictions, Heathrow chief executive John Holland-Kaye says the airport “desperately” needs a third runway to enhance the UK’s access to global markets.
December 2020
- Heathrow wins a Supreme Court challenge, overturning the Court of Appeal’s ruling in February 2020.
October 2023
- Conservative transport minister Jesse Norman says Heathrow expansion still has the “in principle” support of Parliament but it is up to the airport to submit a Development Consent Order application which demonstrates the project will meet “strict criteria on air quality, noise and climate change, as well as being privately financed”.
February 2024
- Thomas Woldbye, Heathrow’s recently appointed chief executive, says passenger numbers growing to above pre-pandemic levels “firms up the business case” for a third runway.
December 2024
- Heathrow chief executive Thomas Woldbye says the Government needs to decide if it wants a third runway “relatively fast” because “we cannot keep on spending money on this”.
- He adds: “If that answer is yes, then let’s sit down and agree on the conditions that need to be true.”
January 2025
- Labour Chancellor Rachel Reeves is expected to use a speech on growth to support the third runway scheme and endorse expansion at Gatwick and Luton Airports.
Full report | Pensioners ‘missing meals’ after Labour’s winter fuel payment changes
07:48
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Jabed Ahmed
My colleague Albert Toth reports:
Water companies need ‘transformational reform’, campaigner warns
07:41
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Jabed Ahmed
Trust in the water industry and its companies is “well and truly severed” after a “litany of broken promises”, a campaigner has said.
A programme agreed with regulators will see water companies undertake thousands of actions totalling £22 billion in investment to improve the environment.
Josh Harris, director of communications of Surfers Against Sewage, told BBC Radio 4’s Today programme: “This is an announcement of massive investment, but that is just to reach compliance over the next five years, and we’re doubtful even of that, to be honest with you, and I think that shows you the true state this water industry is in.”
Asked whether the new announcement of investment will help to restore trust in the industry, Mr Harris said: “What we’ve seen over the past years and decades shows that our trust in the water industry is well and truly severed, and that’s why we believe that the only solution for government is a transformational reform of the sector, and that’s what we’re calling on them to deliver.”
He added: “All water companies in England have been under enforcement action from Ofwat, they’re all under criminal investigation by the EA (Environment Agency) still, and we’ve just got this litany of broken promises and of prosecutions for them.”
Coming up in parliament today:
07:36
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Jabed Ahmed
House of Commons:
- 1130 Wales questions
- 1200 Prime Minister’s Questions
- 1230 A 10-minute rule motion on Pavement Parking
- 1245 Arbitration Bill – second reading
- Motions relating to the Charter for Budget Responsibility and the Welfare Cap
- An adjournment debate on the replacement of the A432 Badminton Road M4 overbridge
Westminster Hall:
- 0930 Outsourcing by Government departments
- 1100 Potential merits of a youth mobility scheme between the EU and the UK
- 1430 Housing targets in rural areas
- 1600 Role of cadet forces
- 1630 Road safety around schools
Heathrow expansion is a ‘mistake and we should be doing it’, Dale Vince says
07:30
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Jabed Ahmed
Major Labour donor Dale Vince has slammed the proposal to build a third Heathrow runway, branding the idea a “mistake”.
The green energy industrialist told BBC Radio 4: “We can have growth, but we shouldn’t try to get it in these ways that increase our carbon emissions. We’ve got to decarbonize energy, transport and food at the moment for all cause to do energy, and we’ll undo that with this Heathrow expansion, which is a big mistake. There’s still a lot of work to do, but we can have growth in the process.”
Watch | Rachel Reeves set to pledge to ‘fight’ for growth in economic speech
07:16
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Jabed Ahmed
Mel Stride slams Labour’s plans for growth
07:00
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Barney Davis
Shadow chancellor Mel Stride claimed that the “biggest barriers to growth” are Sir Keir, Ms Reeves and their financial plans.
Ahead of the speech on Wednesday, Mr Stride said: “Hastily cobbled together announcements of growth in the 2030s will do nothing to help the businesses cutting jobs right now because of Labour’s punishing jobs tax, the companies being crushed under their barrage of new regulations, or the farmers facing bankruptcy over the cruel family farm tax.”
Rachel Reeves wants Oxford and Cambridge to become Europe’s Silicon Valley
06:00
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Barney Davis
Rachel Reeves’ speech in Oxfordshire on Wednesday is expected to confirm support for the expansion of Heathrow Airport and reiterate the Government’s backing for the redevelopment of Old Trafford.
She aims to encourage economic growth, and hail the region around Oxford and Cambridge as having “the potential to be Europe’s Silicon Valley”.
During her speech, the Chancellor is expected to describe Britain as a country of “huge potential” but also to say that “for too long, that potential has been held back”.
“For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better,” she will say.
“Low growth is not our destiny. But growth will not come without a fight. Without a Government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.”
Sir Keir Starmer invokes Thatcher in deregulation promise
05:00
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Barney Davis
Sir Keir Starmer has vowed to “clear out the regulatory weeds” to encourage growth as the Prime Minister invoked his New Labour predecessors and even Margaret Thatcher, saying that for “too long regulation has stopped Britain building its future”.
It comes as the Chancellor is due to set out policies on Wednesday to encourage economic growth, and hail the region around Oxford and Cambridge as having “the potential to be Europe’s Silicon Valley”.
He said ministers will “kick down the barriers to building, clear out the regulatory weeds and allow a new era of British growth to bloom”.
The Prime Minister later added: “A change in the economic weather can only ever come from a supply-side expansion of the nation’s productive power.
“In the 1980s, the Thatcher government deregulated finance capital. In the New Labour era, globalisation increased the opportunities for trade. This is our equivalent.”
Experts clash over Brexit’s impact five years on in The Independent’s latest virtual event
04:00
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Barney Davis
The Independent’s latest virtual event explored Brexit’s impact nearly five years post-EU departure.
Panellists included Labour MP Stella Creasy; Conservative MP Mark Francois; former Brexit Party MEP Claire Fox, Baroness Fox of Buckley; and Professor Anand Menon, director of UK in a Changing Europe.
Starmer warned over ‘anaemic’ post-Brexit reset efforts in damning report
03:00
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Barney Davis
Sir Keir Starmer’s post-Brexit reset of relations with Brussels have been branded anaemic, with the prime minister warned that his EU policy is vague and unambitious.
Archie Mitchell reports:
More than three quarters of farms to be affected by Tractor Tax, new research shows
02:00
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Barney Davis
More than three-quarters of all farms in England and Scotland will be impacted by new inheritance tax rules which have sparked mass protests, according to new research.
It comes after lines of tractors took to streets across Northern Ireland as part of a UK-wide protest by farmers against the announced cap on Agricultural Property Relief (APR).
‘Plans to charge Netflix and Disney+ users for BBC licence fee’
01:00
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Barney Davis
The government is reportedly looking into asking Netflix and Disney+ viewers to contribute to a licence fee to secure the future of the BBC.
As viewing habits evolve the government could consider funding options to support the broadcaster when it reviews the BBC’s current Royal Charter, which will end in 2027.
NHS overspending doubles to £1.4bn as MPs accuse officials of ‘remarkable’ complacency
00:55
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Joe Middleton
Senior NHS leaders have been accused of “remarkable” complacency and being “out of ideas” to fix the UK’s broken health service as overspending doubled to £1.4bn last year.
In a damning new report, MPs warned that a disregard for basic financial planning was hampering the health service’s ability to deliver for patients.
Although ministers have pledged to build an NHS “fit for the future”, the powerful Commons Public Accounts Committee (PAC) said officials did not seem to have the “ideas, or the drive, to match the level of change required, despite this being precisely the moment where such thinking is vital”.
Kate Devlin reports
Reeves warned ‘it’s crunch time’ as chancellor relaunches her economic growth agenda
00:52
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Joe Middleton
Rachel Reeves has been warned by business leaders that it is “crunch time” for her promises to deliver economic growth as she attempts to win back her credibility on the economy.
In her first major speech since the Budget in October, the chancellor is hoping to signal how she can deliver the economic growth she promised during the election.
It comes after a barage of criticism over her policies in the first seven months of government and speculation that Britain is on the brink of a recession.
David Maddox reports
Reeves’ growth drive rubbished by charity as report exposes scale of UK poverty
00:53
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Joe Middleton
An influential anti-poverty charity has rubbished claims by Rachel Reeves that her growth agenda will drive up living standards in the UK as it pushes the government to strengthen Universal Credit instead of chipping away at benefits.
The chancellor has said growing the economy is Labour’s main priority, but a report from the Joseph Rowntree Foundation (JRF) has said economic growth “alone” won’t improve the lives of those struggling with the cost of living.
It said the government must also pursue specifically targeted policies to make a meaningful change, arguing that even strong growth won’t be able to alleviate rising child poverty.
Albert Toth reports
White House confirms Mandelson to be accepted as ambassador
00:15
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Barney Davis
An early headache for Sir Keir Starmer has been resolved with the White House allowing Lord Mandelson to take up his post as the UK’s ambassador to the US. But the Trump administration has also sent a warning over the Chagos Islands deal.
David Maddox reports:
