Reeves says Labour has inherited ‘worst set of circumstances since WW2’ as she makes new housing pledge - live
Labour to ‘fix the foundations’ of economy, Reeves to say
Support truly
independent journalism
Our mission is to deliver unbiased, fact-based reporting that holds power to account and exposes the truth.
Whether $5 or $50, every contribution counts.
Support us to deliver journalism without an agenda.
Louise Thomas
Editor
Rachel Reeves has said the new government has inherited the “worst set of circumstances since the Second World War” as she sets out a raft of housing reform in her first speech as chancellor.
Ms Reeves vowed to take “difficult decisions” on the economy in order to speed up infrastructure projects and unlock private investment - however admitted she had inherited little funds from the previous government.
“I have repeatedly warned that whoever won the General Election would inherit the worst set of circumstances since the Second World War,” she told business chiefs and members of the media.
“What I have seen in the past 72 hours has only confirmed that. Our economy has been held back by decisions deferred and decisions ducked. Political self interest put ahead of the national interest. A government that put party first and country second.”
The first female chancellor also set out plans for planning reform as she insisted the new government will deliver on their pledge of 1.5 million new homes.
The government will restore mandatory housing targets and introduce ministerial intervention into stalled planning applications.
Labour’s new cabinet: Who is in Keir Starmer’s top team?
After the serial winners succumbed to their worst ever defeat, what next for the Tories?
How Nigel Farage took over my hometown – and why Keir Starmer should be worried
Can PM Starmer detoxify politics?
New UK defence secretary pledges more weapons during Ukraine visit
Rachel Reeves says there is ‘no money’ as she reveals raft of reform
Rachel Reeves has admitted that there is “no money” in the treasury as she makes her first speech as chancellor.
Speaking about the treasury she inherited from the precious Conservative government she said: “I have repeatedly warned that whoever won the General Election would inherit the worst set of circumstances since the Second World War.
“What I have seen in the past 72 hours has only confirmed that there is no money, our economy has been held back by decisions deferred and decisions ducked.”
Reform not ‘green light’ on any type of housing development
The Government is not giving a “green light” to any kind of housing development, Rachel Reeves said, as she insisted she wanted to see social and affordable homes built.
The Chancellor said the Government needed the private sector to build homes, telling the audience at her speech: “We are not going to be in the business of building those homes directly. We need the construction sector, the housebuilding sector, to build those homes.”
Ms Reeves added: “We are not going to let people off the hook, we want affordable housing and we want housing for social rent as well. That is an important part of the mix.
“So this is not a green light for any type of housing. We want… and I said in the speech that the deputy prime minister will take an interventionist approach to make sure that we have got the housing mix that our country needs, that our people need.”
Asked if she considered herself to be a Yimby (Yes in my back yard) she said she did “support development” and pointed to examples as a constituency MP.
Mandatory housing targets back so answer “cannot always be no"
Rachel Reeves has said she will bring back mandatory housing targets so the answer for new building projects “cannot always be no”.
She added that it was still up to local authorities to decide where housing is built but it must be built somewhere.
No fault evictions will also be scrapped for renters.
Government to make ‘tough’ and ‘hard choices’ to fix economy
Chancellor Rachel Reeves has said the Government will make the “tough” and “hard choices” to fix the UK’s economy.
She said: “The question is not whether we want growth, but how strong is our resolve? How prepared are we to make the hard choices and face down the vested interests? How willing, even, to risk short-term political pain to fix Britain’s foundations?
“The story of the last 14 years has been a refusal to confront the tough and the responsible decisions that are demanded. This Government will be different and there is no time to waste.”
Britain is “a place to do business”, says Rachel Reeves
Chancellor Rachel Reeves has said “Britain is a place to do business” as she said Labour will not use their large majority to renege on their tax promises.
She said: “Over the weekend, I made clear to Treasury officials that the manifesto commitments that we were elected on will be kept safe and they will be delivered on. That includes robust fiscal rules and it includes our commitments to no increases in national insurance and the basic higher or additional rates of income tax or VAT.
“Now I know that there are some who will argue that the time for caution has passed. Who hold that the platform on which we were elected, the platform that the British people voted for last week, can now be simply forgotten. That we can toss aside those fiscal rules or renege on our tax pledges as a large majority in Parliament means we have the licence to roll back on the principles of sound money and economic responsibility.
“I know that many of you aren’t used to hearing this after recent years, but I believe that the promises that a party is elected on should be delivered on in Government and we will do so.”
She added: “To investors and businesses who spent 14 years doubting whether Britain is a safe place to invest. Then let me tell you, after 14 years, Britain has a stable Government. A Government that respects business, wants to partner with business and is open for business. In an uncertain world, Britain is a place to do business.”
Ministers to prioritise decisions on delayed infrastructure project
“Sixth - as well as unlocking new housing, we will also reform the planning system to deliver the infrastructure our country needs,” Rachel Reeves continued.
She said the government will ask the transport and energy minister to prioritise decisions on infrastructure projects that have been sitting unresolved
She concluded her planning reform plans by saying the government would be setting out “new policy intentions within the year”.
She added: “With these steps we have done more to unblock the planning system in the past 72 hours than the last government did in 14 years.”
“Be in no doubt were are going to get Britain building again.”
Ministers to intervene on planning applications - Reeves
“Fourth - we will also support local authorities with 300 additional planning officers across the country.
“Fifth - if we are to put growth at the centre of our planning system that means changes not only to system itself but to the way ministers can use our powers for direct intervention.
“The Deputy prime minister has said that when she intervenes in the economic planning system the benefit of development will be a central consideration that she will not hesitate to review an application where the potential gain for the regional and national economies warrant it.”
She added that she has recovered two planning appeals already.
Planning reform continued - Rachel Reeves
“Second - we will give priority to eneergy projects in the system to ensure that they make swift progress and we will build on the spatial plan for energy by expanding this to other infrastrucure sectors.
“Third - We will create a new Taskforce to accelerate stalled housing sites in our country. Beginning with Liverpool Central Docks, Worcester Parkway and Langley Sutton Coldfield.”
Planning reform - Rachel Reeves
Rachel Reeves has laid out planning reform in her first speech as chancellor.
She said she had discussed how to get rid of the “years of red rape” with Sir Keir Starmer over the weekend to give the system a “new signal”.
She said: “First we will reform the national planning policy framework, consulting on a new growth focused approach to the planning system before the end of the month including restoring mandatory housing targets.
“And as of today we are ending the absurd plan on new offshore wind in England. We will also go further and consult on bringing onshore wind back into the national infrastructure - meaning decisions on large developments will be made nationally not locally.”
New ministerial appointments
Sir Keir Starmer has released a raft of ministerial appointments.
Bridget Phillipson has been made Minister for Women and Equalities in addition to her role as Education Secretary.
The following ministerial appointments have also been confirmed:
Anneliese Dodds MP as a Minister of State in the Foreign, Commonwealth and Development Office and as a Minister of State (Minister for Women and Equalities) in the Department for Education. Ms Dodds will attend Cabinet.
Rt Hon Nick Thomas–Symonds MP as Paymaster General and Minister for the Cabinet Office (Minister for the Constitution and European Relations) in the Cabinet Office.
Lord Livermore as Financial Secretary to the Treasury.
Stephen Doughty MP as a Minister of State in the Foreign, Commonwealth and Development Office.
Dame Angela Eagle DBE MP as a Minister of State in the Home Office.
Rt Hon Dame Diana Johnson DBE MP as a Minister of State in the Home Office.
Lord Coaker as a Minister of State in the Ministry of Defence.
Rt Hon Maria Eagle MP as a Minister of State in the Ministry of Defence.
Heidi Alexander MP as a Minister of State in the Ministry of Justice.
Karin Smyth MP as a Minister of State in the Department of Health and Social Care.
Stephen Kinnock MP as a Minister of State in the Department of Health and Social Care.
Catherine McKinnell MP as a Minister of State in the Department for Education.
Sarah Jones MP as a Minister of State in the Department for Energy Security and Net Zero and the Department for Business and Trade.
Alison McGovern MP as a Minister of State in the Department for Work and Pensions.
Rt Hon Sir Stephen Timms MP as a Minister of State in the Department for Work and Pensions.
Sir Chris Bryant MP as a Minister of State in the Department for Science, Innovation and Technology and the Department for Culture, Media and Sports.
Lord Hendy of Richmond Hill CBE as a Minister of State in the Department for Transport.
Daniel Zeichner MP as a Minister of State in the Department for Environment, Food and Rural Affairs.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments