Chancellor puts housing at the heart of a new era for economic growth

Posted on Tuesday, July 9, 2024

The new chancellor yesterday vowed to take immediate action to fix the foundations of the economy, rebuild Britain and make every part of the country better off.

In her first speech as chancellor, Rachel Reeves pledged to leaders of some of the UK’s pioneering industries to build growth on strong and secure foundations built on stability, investment and reform, and forged through a new partnership with the private sector.

Addressing the difficult economic inheritance this government faces, she committed to taking immediate action to drive sustained economic growth, the only route to improving the prosperity of our country and the living standards of working people.

Setting out her first steps to deliver on the government’s commitments in its manifesto that every action it takes will be based on sound money and economy stability, the chancellor promised a new economic model that will grow the economy and keep taxes, inflation and mortgages as low as possible.

The chancellor said had the UK economy grown at the average rate of OECD economies over the fourteen years from 2010, it would be £143.3bn larger – worth £5,053 for every household in the country. This could have brought in an additional £58bn in tax revenues in the last year alone to sustain our public services.

Taking decisive action, the government yesterday announced a series of measures to lay the foundations for a dynamic, modern and growing economy, including taking urgent steps to build 1.5 million homes over the next five years and the immediate removal of the de facto ban on onshore wind in England, as part of its clean energy mission.

Reeves said: “I am taking immediate action to fix Britain’s economic foundations.

“By growing our economy we can rebuild Britain and make every part of the country better off.”

The deputy prime minister Angela Rayner commented: “Our country is under new management and a new era for economic growth will be built on secure foundations.

“The chancellor and I will work in lockstep to kickstart the economy, unleashing housebuilding and powering local growth.

“Change starts now. We will unblock the bottlenecks and drive forward a transformational package to build the homes people need.

Energy Security and Net Zero Secretary, Ed Miliband, added: “Every family has paid the price of the ban on onshore wind farms in higher energy bills.  This ban has undermined our energy security, put costs on people’s bills – especially those on lower incomes – and held us back in our fight against climate change.

“This government is wasting no time in delivering the bold plan we need to take back control of our energy; boosting our energy independence and cutting bills for families as we tackle the climate crisis.

“Getting rid of this ban and giving priority for planning permission for much needed infrastructure sends an immediate signal to investors here and around the world that the UK is back in business, an immediate step in our mission to make Britain a clean energy superpower.”

Via @PropertyIndustryEye