Chancellor Rachel Reeves unveiled her economic growth strategy, emphasizing government-backed initiatives in the south, while also promising investment in the North. The plans include a third runway at Heathrow, expansion of Oxford-Cambridge corridor, and new railway lines across the North.
Rachel Reeves , the Chancellor, outlined her economic growth strategy, emphasizing several government-backed initiatives in the south of England. During a speech in Oxfordshire on January 29th, she announced the green light for a third runway at London's Heathrow Airport. Reeves also detailed plans for economic expansion around Oxford and Cambridge, envisioning them as 'Europe's Silicon Valley.
' Additionally, she reaffirmed her backing for the redevelopment of Old Trafford, although specifics were not disclosed. \This announcement follows warnings from Andy Burnham, Mayor of Greater Manchester, that a third runway at Heathrow would concentrate investment in London at the expense of the north. Despite this, Burnham welcomed Reeves' support for the Old Trafford redevelopment plans and the surrounding area. He urged her to also endorse proposals for new railway connections across the north, a point she did not address in her speech. Instead, she reiterated the multi-billion pound rail upgrade program in the north, previously confirmed in last year's Budget. \Zoë Billingham, Director of the northern think tank IPPR North, responded to Reeves' speech stating: 'The Chancellor's laser focus on economic growth to raise living standards is exactly what the country needs right now. The only way to grow the economy to the benefit of all is to devolve power and target investment across our regions. Overheating the south east in the pursuit of growth that benefits the few won’t work. We urge the government to ditch the defaults and lean into a regionally roaring economy. It's time for take-off – but not from Heathrow.' \Reeves' speech detailed government support for a third runway at Heathrow, alongside expansions at Luton and Gatwick airports. She also endorsed the Lower Thames Crossing, a new £9 billion road project connecting Kent and Essex. Plans for the Oxford-Cambridge corridor were also unveiled, with Reeves predicting a potential £78 billion contribution to the UK economy by 2035. These include funding for rail links between Oxford, Cambridge, and towns like Bedford and Milton Keynes, along with road improvements. Oxford will receive a growth commission, similar to one established in Cambridge, to facilitate economic growth in the city and surrounding areas. Nine new reservoirs, including locations near Abingdon in Oxfordshire and the Fens near Cambridge, are also planned. A new cancer research hospital in Cambridge, as part of the new hospitals program, was also prioritized, following last week's announcement of up to £1.5 billion for the rebuilding of North Manchester General Hospital. \Regarding investment in the North, Reeves announced government support for the reopening of Doncaster Sheffield Airport as South Yorkshire Airport City. Plans for a new advanced manufacturing and logistics park at East Midlands Airport, owned by Manchester Airports Group, were also revealed, promising to 'unlock' £1 billion in investment. Reeves also stated that the National Wealth Fund will collaborate with Greater Manchester and other city-regions to support 'key investments.' She pledged to review the Treasury's Green Book, which outlines government investment rules, often criticized by northern figures, including Burnham, for favoring London and the South. Reeves asserted that the Green Book review ensures a 'fair hearing' for investment across all regions. However, concerning investment in Greater Manchester, Reeves did not commit any specific funding for projects like Old Trafford. \Following the speech, Burnham expressed his satisfaction: 'The government has gone up a gear today in its mission to kickstart economic growth, and there was a clear recognition that Greater Manchester has a central role to play. It was great to hear the Chancellor back our vision for the regeneration of Old Trafford, which has the potential to deliver 5,000 new homes and give a £7 billion boost to the UK economy. By beginning to move the rail freight terminal away from the site to other parts of the north west, we can unblock the rail bottleneck in Manchester city centre, which will have knock-on benefits for the rail network right across the North. Greater Manchester has been the fastest growing city-region in the UK for some time now, but we can’t stand still. A new railway line connecting Manchester and Liverpool is essential to growing our economy, and so it was encouraging to hear that the Government will review its Green Book advice on public investment. We have a golden opportunity now to lock-in growth for future generations, and we will continue to work closely with Government to drive that mission forward.'
Politics ECONOMIC GROWTH INVESTMENT HEATHROW AIRPORT OXFORD-CAMBRIDGE CORRIDOR RAIL INFRASTRUCTURE NORTHERN INVESTMENT RACHEL REEVES GREATER MANCHESTER
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