Chancellor Rachel Reeves outlines bold growth plans, with a focus on housing, infrastructure, and the OxCam Arc, as Labour faces challenges ahead of the next election

In an ambitious speech on Wednesday, Chancellor Rachel Reeves made it clear that the government is fully committed to securing economic growth, a battle that could define the success of Sir Keir Starmer’s Labour government in the coming years. With the 2024 election in sight, the stakes have never been higher for Labour. Growth, and the government’s ability to deliver on it, is the cornerstone of Starmer’s vision for the future, and Reeves outlined bold plans to ensure the economy doesn’t stagnate.

Reeves’ proposals were audacious, including plans to fast-track the building of 1.5 million homes across the UK by removing barriers such as planning restrictions and reducing the impact of judicial reviews. The government’s push for the OxCam Arc, which promises to create “Europe’s Silicon Valley” with a new rail line and up to 18 new towns along the Oxford-Cambridge corridor, was also reaffirmed. And, in a move that has been decades in the making, Reeves aimed to be the first chancellor to secure approval for a third runway at Heathrow before the end of this parliament.

These ambitions are not without their hurdles. Both the third runway and the OxCam Arc have been tied up in years of political wrangling and environmental opposition. Meanwhile, previous governments have struggled to meet ambitious housing targets, and house prices remain well above what many can afford. But Reeves, in a show of confidence, has set her sights on overcoming these challenges and succeeding where others have failed. She plans to face down opposition from environmentalists, NIMBYs, and even some within her own party, including Labour mayors.

For Starmer and Reeves, however, this is more than just policy; it’s a political calculation. The delivery of these plans will likely take years, with the benefits of the projects only fully realised in the long term. Critics argue that by the time these projects bear fruit, Labour may already be facing a tough battle at the polls. But the government hopes that the visible progress – the construction cranes in the sky and the foundations of new infrastructure – will be enough to reassure voters that change is on the horizon.

Indeed, without tangible signs of progress, Labour could face a tough challenge in 2024. Starmer’s vision hinges on growth, and without it, Labour will struggle to invest in public services or improve living standards. The upcoming years are pivotal, and critics will point to the current economic instability, such as the £25 billion tax burden that has dampened business confidence, and the recent job cuts at Sainsbury’s and Tesco, as evidence that growth is still elusive.

Reeves has promised to address these contradictions, noting that an action plan to rip up anti-growth regulations will be unveiled in March. But whether this is enough to restore business confidence and prove Labour’s credentials as the party of growth remains to be seen. The coming months will be crucial, and for Starmer and Reeves, this fight for growth is one they cannot afford to lose.