Chancellor Rachel Reeves will declare that economic growth “will not come without a fight” as she unveils ambitious plans to revitalise Britain’s struggling economy. In a major speech in Oxfordshire on Wednesday, she is expected to set out a wide-ranging strategy aimed at boosting investment, infrastructure, and job creation across the country.
Among the most significant announcements will be government backing for the long-debated third runway at Heathrow – a move that has divided opinion within Labour and faced opposition from several senior Cabinet ministers, including the Prime Minister himself in the past. Reeves is also expected to reaffirm the government’s support for the redevelopment of Manchester United’s Old Trafford stadium and announce major infrastructure projects, including new reservoirs and a high-speed train station with fast links to London.
A new era for economic growth
In her speech, Ms Reeves will argue that the UK has been “held back” by years of stagnation and low expectations, making the case for an interventionist government that actively supports economic expansion. She will champion the potential of an “Oxford-Cambridge growth corridor”, which she claims could become “Europe’s Silicon Valley”, driving innovation in artificial intelligence, life sciences, and advanced technology.
“Britain is a country of huge potential. A country of strong communities, with local businesses at their heart,” Reeves will say.
“We are at the forefront of some of the most exciting developments in the world, like artificial intelligence and life sciences. We have great companies based here delivering jobs and investment in Britain. And we have fundamental strengths – in our history, our language, and our legal system – to compete in a global economy.”
However, she will argue that this potential has been stifled for too long:
“For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better. 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.”
Key infrastructure plans
Among the major infrastructure commitments, Reeves is expected to announce that the planned Tempsford station in Bedfordshire will be fast-tracked, with construction set to be accelerated by up to five years. The new East Coast Mainline station will provide fast rail connections to London in under an hour, improving accessibility and boosting economic development in the region.
Other transport improvements include:
- Funding for better regional transport links, including new services between Oxford and Milton Keynes via East-West Rail.
- Upgrades to the A428, reducing travel times between Milton Keynes and Cambridge.
- Expansion of Gatwick and Luton airports, alongside Heathrow’s third runway plans, to improve the UK’s aviation capacity.
Additionally, Reeves will announce billions of pounds in investment agreements with water companies to upgrade infrastructure, including the construction of nine new reservoirs. She will also confirm that the Environment Agency has lifted its objections to a 4,500-home development in Cambridgeshire.
Cambridge to become a science powerhouse
As part of the government’s commitment to science and technology, Reeves will prioritise the development of the Cambridge Cancer Research Hospital, which will be included in the government’s new hospitals programme.
To oversee the economic transformation of the Oxford-Cambridge corridor, the government has appointed Sir Patrick Vallance as its new growth corridor champion. Vallance, who gained national recognition during the Covid-19 pandemic as the UK’s chief scientific adviser, will be responsible for ensuring the region realises its full economic potential.
Heathrow expansion and environmental concerns
The decision to back Heathrow’s expansion is expected to be one of the most contentious elements of Reeves’ announcement. While proponents argue that a third runway will create jobs and boost UK trade, environmentalists and some MPs have raised concerns over its impact on air quality, noise pollution, and the country’s net-zero commitments.
Aviation Minister Mike Kane has stressed that the project must meet strict environmental standards, stating:
“We have been clear that any airport expansion proposals would need to demonstrate that they contribute to economic growth, are compatible with the UK’s legally binding climate-change commitments, and meet strict environmental standards of air quality and noise pollution.”
Some Labour MPs have welcomed the economic benefits but urged the government to find a balance between growth and sustainability. Deirdre Costigan, MP for Ealing Southall, said:
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“Some of my constituents will welcome the good-quality, well-paid jobs airport expansion will bring, but others will have environmental concerns.”
Meanwhile, Brighton Green Party MP Sian Berry described the decision as “vastly irresponsible”, arguing that it “flies in the face of expert advice”.
A shift in government priorities
The speech follows revelations that both the Chancellor and the Prime Minister have instructed Cabinet ministers to prioritise policies that drive economic growth. Sir Keir Starmer recently told business leaders in the City of London that his government was “hard-wiring growth into all the decisions of the Cabinet”, signalling a more pro-business and interventionist approach to economic recovery.
However, the Conservative opposition has criticised the Labour government’s approach, with some MPs branding it a “panicked and rushed attempt” to deflect from Britain’s ongoing economic struggles.
Despite the political divisions, Reeves’ speech marks a significant moment in the Labour government’s economic strategy, as it seeks to drive investment, boost productivity, and establish Britain as a global leader in science and technology. Whether her ambitious plans will deliver the desired economic turnaround remains to be seen.
