Chancellor Rachel Reeves – The NEN

Oxbridge to become Europe’s Silicon Valley?

Chancellor unveils new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035

Rachel Reeves will today vow to go ‘further and faster’ to deliver the government’s Plan for Change to kick start economic growth and put more pounds in people’s pockets.
Chancellor to unveil plans to unleash the potential of the Oxford-Cambridge Growth Corridor that will add up to £78 billion to the UK economy according to industry experts, catalysing growth of UK science and technology.
Comes after Chancellor last week announced National Wealth Fund and Office for Investment will take new approaches to spur regional growth across the UK.

Chancellor Rachel Reeves will today vow to go “further and faster” to kick start the economy, as she unveils new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035 according to industry experts.

In a speech in Oxfordshire, the Chancellor will tell regional and business leaders that economic growth is the number one mission of this government and its Plan for Change. She will declare that Britain’s economy has “huge potential” and is at the “forefront of some of the most exciting developments in the world like artificial intelligence and life sciences.”

She will back the redevelopment of Old Trafford and will review the Green Book – the government’s guidance on appraisal – in order to support decisions on public investment across the country, including outside London and the Southeast.

The speech comes after the Chancellor last week announced a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities. This includes the NWF trialling Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region and the OfI piloting an approach in the Liverpool City Region and the North East Combined Authority to connect their regions to central government and industry expertise in order to unlock private investment.

Reeves will say “low growth is not our destiny, but that economic 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.”

The Chancellor is expected to say: “Britain is a country of huge potential. A country of strong communities, with local businesses at their heart.

“We are 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.

“But for too long, that potential has been held back. 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.

“That’s what our Plan for Change is about. That is what drives me as Chancellor. And it is what I’m determined to deliver.”

In her speech the Chancellor will announce:

The Environment Agency has lifted its objections to a new development around Cambridge that could unlock 4,500 new homes and associated community spaces such as schools and leisure facilities as well as office and laboratory space in Cambridge City Centre. This was only possible as a result of the government working closely with councils and regulators to find creative solutions to unlock growth and address environmental pressures.
That the government has agreed for water companies to unlock £7.9bn investment for the next 5 years to improve our water infrastructure and provide a foundation for growth. This includes nine new reservoirs, such as the new Fens Reservoir serving Cambridge and the Abingdon Reservoir near Oxford.
Confirming funding towards better transport links in the region including funding for East-West Rail, with new services between Oxford and Milton Keynes this year and upgrading the A428 to reduce journey times between Milton Keynes and Cambridge.
Prioritisation of a new Cambridge Cancer Research Hospital as part of the New Hospitals Programme bringing together Cambridge University, Addenbrookes Hospital and Cancer Research UK.
Support for the development of new and expanded communities in the Oxford-Cambridge Growth Corridor and a new East Coast Mainline station in Tempsford, to expand the region’s economy.
That she welcomes Cambridge University’s proposal for a new large scale innovation hub in the city centre. As the world’s leading science and tech cluster by intensity, Cambridge will play a crucial part in the government’s modern Industrial Strategy.
A new Growth Commission for Oxford, inspired by the Cambridge model, to review how best we can unlock and accelerate nationally significant growth for the city and surrounding area.
Appointment of Sir Patrick Vallance as Oxford-Cambridge Growth Corridor Champion to provide senior leadership to ensure the Government’s ambitions are delivered.

The Chancellor is expected to say: “Oxford and Cambridge offer huge economic potential for our nation’s growth prospects.

“Just 66 miles apart these cities are home to two of the best universities in the world two of the most intensive innovation clusters in the world and the area is a hub for globally renowned science and technology firms in life sciences, manufacturing, and AI.

“It has the potential to be Europe’s Silicon Valley. The home of British innovation.

“To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area. But to get from Oxford to Cambridge by train takes two and a half hours.

“There is no way to commute directly from towns like Bedford and Milton Keynes to Cambridge by rail. And there is a lack of affordable housing across the region.

“Oxford and Cambridge are two of the least affordable cities in the UK. In other words, the demand is there but there are far too many supply side constraints on economic growth in the region.”

Designed to take advantage of the region’s unique strengths and potential, the announcements are further evidence of the government’s modern Industrial Strategy in action as it seeks to create the right conditions to increase investment in our leading growth sectors like life sciences, artificial intelligence and advanced manufacturing.

She will add: “Taken together, these announcements show that for the first time a government is providing real leadership to deliver this project with a clear strategy for the entire region backed by funding for the housing and infrastructure we so badly need.“

The speech comes after the Chancellor last week announced a package of investment reforms to spur regional growth across the UK.

Rachel Reeves set out a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities.

Putting local knowledge and leadership at the forefront, there will be tailored strategies for each region to ensure investment matches local needs and drives sustainable growth.

Putting the government’s Plan for Change into action, the Chancellor set out that the goal is to harness growth everywhere to rebuild Britain and usher in a decade of national renewal. Measures included the NWF trialling Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region and the OfI piloting an approach in the Liverpool City Region and the North East Combined Authority to connect their regions to central government and industry expertise in order to unlock private investment.

Science Minister, Lord Patrick Vallance said: “The UK has all the ingredients to replicate the success of Silicon Valley or the Boston Cluster but for too long has been constrained by short termism and a lack of direction.

“This government’s Plan for Change will see an end to that defeatism. I look forward to working with local leaders to fulfil the Oxford-Cambridge corridor’s potential by building on its existing strengths in academia, life sciences, semiconductors, AI and green technology amongst others.

“Together we will build the infrastructure and partnerships needed to join up this region’s academia, investors and business so that we can boost growth, deliver innovations and create new jobs that improve all our lives.”

Transport Secretary, Heidi Alexander said: “Well connected communities are a cornerstone for growth. East West Rail will not only provide better links and lasting benefits to Oxford and Cambridge, but to all the surrounding areas.

“I’m also delighted to announce a brand new station at Tempsford, which will be game changing for the region – allowing a new community and businesses to grow, unlocking faster and smoother access to opportunities, and delivering on the Government’s Plan for Change.”

S2G4KH Starling murmuration at RSPB Ham Wall, Avalon Marshes, Somerset

Responding to Rachel Reeves’ speech today on economic growth Roger Mortlock, CPRE countryside charity chief executive, said:

On airport expansion and the Lower Thames Crossing

‘The single biggest threat to the countryside is climate change. If the government expands Heathrow, Luton, City and Gatwick airports, the increase in carbon emissions will make a mockery of its commitment to reaching net zero by 2030.

‘Airport expansion will do nothing to boost UK growth. There has been no net increase in air travel for business purposes or in jobs in air transport since 2007. Recent research from the New Economic Foundation indicates that airport expansion will drive significant tourism revenue abroad, not bring it to the UK. To create the jobs of the future we need investment in low-carbon industries and transport, not more unsustainable expansion of the UK’s airports.

‘CPRE local groups in Bedfordshire, Hertfordshire, London and Sussex have been at the forefront of campaigns to prevent further airport expansion. If implemented, these proposals would have a devastating impact on some of the UK’s most valuable agricultural land, vital wildlife habitats and green spaces close to millions of people’s homes.’

On the Lower Thames Crossing

‘The proposed Lower Thames Crossing would also drive-up levels of unsustainable travel at a time when funding should be directed into sustainable public transport instead. CPRE Kent has highlighted how the crossing’s environmental and economic impacts on the local area would far outweigh any supposed benefits.’

On zonal planning reforms

‘We welcome the government’s plan to support the construction of more homes close to existing transport hubs, particularly in our towns and cities. Provided that they are genuinely affordable and built on brownfield land, these homes could help unlock growth by providing sustainable places to live close to where people already live, work and go to school.

‘Building more homes close to transport hubs must not be allowed to undermine the Green Belt, one of this country’s most successful spatial protections with huge potential to help address the climate and nature emergencies.’

On the planning regime for Nationally Significant Infrastructure Projects

‘It’s clear we’ve got to build a clean energy grid fit for the future but the best way to achieve this is with local communities involved from the start.

‘To speed up the planning system, the government should deliver on its commitment to fund hundreds of new planning officers.

‘The UK could learn from countries such as Ireland and Australia, which involve communities in decision making from the beginning, reducing the need for lengthy and expensive legal processes without eroding democracy. For everyone’s sake, we should be building consensus, not dismissing people with real ideas and solutions as ‘blockers’.

Government goes further and faster on planning reform in bid for growth

Chancellor continues ‘bold reform’ of the planning system in England to deliver on the Plan for Change

Chancellor reveals new plans for more houses near commuter train stations to kick start economic growth, as government continues its bold reform of the planning system to deliver on the Plan for Change for working people.
Sweeping reforms under the Planning and Infrastructure Bill will take an axe to red tape that slows down approval of infrastructure projects and the government will work with Parliamentarians to ensure a smooth and speedy delivery.
Chancellor highlights in its first six months the government has already taken 13 planning decisions and approved 9 nationally significant infrastructure projects spanning airports, data centres, energy farms, and major housing developments.

Untapped land near commuter transport hubs will be unlocked to build new housing for working people, as part of ‘bold new steps’ to reform the planning system and unlock growth to deliver win-win outcomes for the country and the economy. The reforms will create secure, high-paying jobs and deliver major infrastructure faster to bolster public services and lower bills.

Ahead of the Chancellor’s speech next week on economic growth, the government has today announced how it will go further and faster to deliver Plan for Change milestones of 1.5 million new homes over five years and 150 decisions on major infrastructure projects by the end of the Parliament.

It follows the ambitious reforms unveiled by the Chancellor in July and delivered by the Deputy Prime Minister at the end of last year through publication of the overhauled National Planning Policy Framework.

The government’s next steps on planning reform include streamlining a set of national policies for decision making to guide planning decisions taken by local authorities and promote housebuilding in key areas.

In a major new growth push, the government will ensure that when developers submit an application for acceptable types of schemes in key areas – such as in high potential locations near commuter transport hubs – that the default answer to development is ‘yes’.

This will unlock more housing at a greater density in areas central to local communities, boosting the government’s number one mission to grow the economy. These measures will transform communities, with more shops and homes nearer to the transport hubs that working people rely on day in day out.

As part of these measures, the government will streamline decisions on critical infrastructure projects by slashing red tape in the planning system which is holding up projects. That means looking again at the input from expert bodies who developers are required to consult – and replacing the current systems of environmental assessment to deliver a more effective and streamlined system that reduces costs and delays for developers, whilst still protecting the environment.

The Chancellor also revealed today that she is championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space as a shining example of the bold pro-development model that will drive growth across the region, with authorities exploring setting up a mayoral development corporation body to redevelop the area.

The government is also working with Greater Manchester to release growth-generating land around transport hubs through local development orders, such as around Castleton Station, with the potential for this innovative use of existing powers to kickstart building in these sites to be a blueprint for the rest of the country so that every corner of the UK benefits from growth.

The new proposals tackle the dire inheritance head on. Last year homebuilding fell below 200k and permissions reached their lowest for over a decade, which is why the government is taking radical action necessary to reverse this trend and deliver the homes necessary to reach 1.5 million homes over this Parliament.

This government is turning the page on the decline and decay of the past and choosing growth with a significant number of planning decisions already made by Ministers since July. This includes 13 planning decisions taken by Ministers over 90% of which within the target timeframe, and 9 nationally significant infrastructure projects approved, collectively spanning airports, data centres, solar farms and major housing developments such as the Expansion of London City Airport, a data centre in Buckinghamshire and a new M&S store in Oxford Street, London.

The government has committed to making 150 decisions on these major economic infrastructure applications over this Parliament, more than doubling the decisions made in the previous Parliament and more than 130 made since 2011.

This will unlock the growth necessary to deliver win-win outcomes for the country and the economy – creating stable and high-paying jobs, building more affordable homes, and delivering critical infrastructure faster to bolster public services and lower bills – while improving the environment where it matters most.

Chancellor of the Exchequer, Rachel Reeves said: “I am fighting every single day in our mission to kick start the economy, deliver on our Plan for Change, and make working people better off. That includes avenues that others have shied away from.

“Too often the answer to new development has been “no”. But that is the attitude that has stunted economic growth and left working people worse off. We need to do things differently and that journey began as soon as I started at the Treasury in July. These are our next steps and I can say for certain, there is more to come.”

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said: “From day one I have been clear that bold action is needed to remove the blockers who put a chokehold on growth. That’s why we are putting growth at the heart of our planning system.

“Growth means higher wages, better living standards, families raising their children in safer homes, and the next generation taking their first steps onto the housing ladder.

“This year we will go even further to make the dream of homeownership a reality for millions and fix the housing crisis we inherited for good – getting more shovels in the ground to build the homes and vital infrastructure that our communities so desperately need.”

Growth is the number one mission of the Labour Government’s Plan for Change, so we can put more money in people’s pocket. Today the Chancellor is setting out further action on the government’s growth mission by announcing the following:

Planning

The Planning and Infrastructure Bill will provide the powers to accelerate the infrastructure and homes needed to deliver on the government’s ambitions – and fast track critical infrastructure such as windfarms, power plants, and major road and rail projects. Today the government is confirming for the first time that the Bill will be introduced in Spring and we will work with Parliamentarians to ensure a smooth and speedy delivery.

Further detail on the Bill is being published today in a working paper on streamlining decisions on nationally significant infrastructure projects, including reducing the burden on developers by making consultation requirements more proportionate, strengthening statutory guidance to ensure they are clear over what is and is not required when submitting planning applications, and ensuring that National Policy Statements are updated at least every five years to give more certainty to developers, speeding up decisions.

Previous working papers have already set out reforms to the operation of planning committees, and an overhaul of the way developers can discharge their environmental obligations so that they can crack on with building.

The Chancellor is today also announcing reform to the statutory consultee system, which requires developers to consult local communities and expert bodies when making planning decisions. This often means too many organisations consulted on too wide a range of issues, clogging up much-needed development.

Today the government has declared a moratorium on any new statutory consultees and the Chancellor and the Deputy Prime Minister will review in the coming weeks the existing arrangements to make sure they meet this Government’s ambitions for growth.

This follows changes announced last week to the rules around challenging major infrastructure projects through the courts – stopping blockers getting in the way of the Government’s Plan for Change and getting nuclear plants, trainlines and windfarms built quicker. Current excessive rules mean unarguable cases can be bought back to the courts three times.

This will be overhauled, with just one attempt at legal challenge for hopeless cases that would previously have caused much more delay.

Environment

The government is also reforming environmental impact assessments, which have strayed from their original purpose of supporting decision making and have become voluminous and costly documents that too often support legal challenges rather than the environment.

They will be replaced by Environmental Outcome Reports which will be simpler and much clearer, which will support growth by saving developers time and money, whilst still protecting the environment. The government will publish a roadmap for the delivery of these new Environment Outcomes Reports in the coming months.

This follows a working paper on development and nature published by the government before Christmas setting out a new approach that will turbocharge the delivery of housing and infrastructure while securing positive environmental outcomes.

Developers will be able to pay into the Nature Restoration Fund which will allow them to discharge relevant environmental obligations for protected sites and species and focus on building, safe in the knowledge that appropriate action will be taken to support nature’s recovery.

Major infrastructure

A working paper is being published setting out the government’s plan for its 10 Year Infrastructure Strategy, which will be focussed on infrastructure’s role in enabling resilient growth, delivering clean energy by 2030 and net zero by 2050 while securing the growth benefits of the transition, and improving public services.

The working paper seeks industry views as part of the government’s continued consultation on the development of the strategy which will be published in late Spring.

Jennie Daly, CEO of Taylor Wimpey said: “We continue to be impressed by the speed with which the government has gripped the need for planning reform to deliver much needed new housing supply. New high-quality housing and the infrastructure it brings are essential drivers of economic growth.

“We welcome the commitment from the government to introduce the Planning and Infrastructure Bill as a priority in the spring, and we look forward to supporting the promised consultation work on reforming the planning system to expedite decisions and overcome local barriers to growth.”

Mark Reynolds, Mace Group Executive Chairman and Co-Chair of the Construction Leadership Council said: “When the government and the Construction sector work in partnership we can unlock growth of up to 2% of GDP. The simplification and streamlining of the planning system is a significant contributor to this so the announcements today are a welcome development which could deliver £2 billion per year in savings once fully implemented.

“In addition the upcoming publication of the 10 year National Infrastructure Strategy is an opportunity to set out plans for ambitious growth and chart a direction for the industry, instilling confidence in businesses to invest in skills, innovation and deliver profitable growth, we look forward to contributing to its success.”

Neil Jefferson, CEO of Home Builders Federations said: “Identifying more land for development and removing the treacle from the planning process that delays applications is essential if we are to increase housing supply.

“The swift moves to address these blocks in the planning system are very welcome and will pay dividends if the other constraints on housing supply can be tackled. Housing delivery is dependent upon a range of factors, of which planning is a major one, and these changes underline the government’s commitment to increasing supply.”

Mayor of Greater Manchester, Andy Burnham said: “With our devolved powers we’re mobilising the whole Greater Manchester system to lock in growth for the next decade and reap the rewards for our city-region and UK plc.

“The project around Old Trafford represents the biggest opportunity for urban regeneration this country has seen since London 2012 and is a key part of our 10-year plan to turbocharge growth across Greater Manchester.

“We look forward working with the Government on moving freight away from the site around Old Trafford to new locations to open up capacity our rail network, and unlock massive regeneration potential – delivering benefits across the whole of the North.”

As part of its ‘relentless focus’ to get Britain building and achieve the ambition to build 1.5 million new homes over five years, the government has already:

Overhauled the National Planning Policy Framework, including new and higher mandatory housebuilding targets for councils, a comprehensive modernisation of the Green Belt, and far greater support for growth-supporting development such as labs and datacentres.
Launched a New Homes Accelerator group to unlock thousands of new homes currently in the planning system.
Published a series of working papers on further reforms to the planning system:
- ‘brownfield passports’, designed to ensure that where planning proposals meet design and quality standards, the default answer to planning permission is ‘yes’,
- development and nature recovery, detailing a new approach for developers to discharge environmental obligations through payment into a Nature Restoration Fund which then allows them to crack on with building,
- planning committees, proposing a national scheme of delegation to speed up the approval process and provide greater certainty to developers.
Set up an independent New Towns Taskforce, as part of a long-term vision to create largescale communities of at least 10,000 new homes each.
Awarded £68 million to 54 local councils to unlock housing on brownfield sites.
Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules.
Extended the existing Home Building Fund for this year providing up to £700 million of vital support to SME housebuilders, supporting the delivery of around 12,000 additional homes.
Confirmed that government investment in housing will increase to £5 billion for this year, including an extra £500 million in new funding for the Affordable Homes Programme to deliver tens of thousands of new affordable and social homes across the country.

Chancellor unveils plan to ‘turbocharge’ investment across UK

A package of investment reforms to spur regional growth across the country is being announced to attract investment in all corners of the UK

Ahead of her speech next week on economic growth, the Chancellor has announced a new approach across the National Wealth Fund (NWF) and the Office for Investment (OfI), which will work with local leaders across the UK to support places to build pipelines of incoming investment and projects linked to regional growth priorities.

This new approach will put local knowledge and leadership at the forefront, with tailored strategies for each region, ensuring investment matches local needs and drives sustainable growth. Putting the government’s Plan for Change into action, the goal is to harness growth everywhere to rebuild Britain and usher in a decade of national renewal.

The National Wealth Fund will also trial Strategic Partnerships starting in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region. These partnerships will provide enhanced, hands-on support with tailored commercial and financial advice to help regions develop and secure long-term investment opportunities.

This initiative will play a key role in unlocking investment across sectors such as technology, manufacturing, and green energy, helping to fuel the next wave of economic growth.

This builds on the positive impact the NWF has already had in supporting regional growth. In the last six months, the NWF has created 8,600 jobs and unlocked nearly £1.6 billion in private investment across various sectors, including green technologies, digital infrastructure, and manufacturing.

The news comes the same day as Regional Mayors are set to meet with the Deputy Prime Minister and other ministers from MHCLG, HMT, and DWP in Rotherham to discuss key regional priorities and how government can further support them to achieve their growth ambitions. This meeting will inform the government’s ongoing efforts to align national and local growth strategies and unlock investment opportunities in each region.

On top of this, OfI is working closely with local leaders and industry to turn regional growth plans into commercially attractive investment opportunities. Starting with Liverpool City Region and North East Combined Authorities, the OfI will pilot an approach that connects regions to central government and industry expertise to support them in unlocking private investment.

These initiatives will test how government can work in partnership with regions to see where investment can play a meaningful role in driving growth, which is the best way to improve living standards and put more money in working people’s pockets.

Launching this initiative in Scotland comes in recognition of the nation’s potential to drive forward ambitious projects in support of this government’s growth and clean energy missions.

The government is committed to working in close partnership with the devolved governments through the National Wealth Fund to maximise investment opportunities in Scotland’s cities to deliver growth.

Our cities have huge potential to drive improved living standards and spread opportunities across their wider regions. Bringing the productivity of major cities like Manchester, Birmingham, Leeds, and Glasgow to the national average would deliver an extra £33 billion in additional Gross Value Added (GVA) annually, contributing significantly to the government’s Plan for Change economic growth objectives.

The action today comes as the Chancellor returns from Davos, where she has been making the case for investment in the whole of the U.K. Since entering office, the government has been focused on restoring economic stability, which is the foundation of growth, to give businesses the confidence to invest and expand in the UK.

Securing investment is also central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of our Plan for Change.

Chancellor of the Exchequer, Rachel Reeves MP said: “At Davos I’ve been telling some of the world’s biggest investors that the U.K. is a safe bet for their investments, whether that’s in London or Leeds.

“And in our mission for growth, it’s critical that we are growing every region’s local economy, that’s why we are doing things differently.

“Those with local knowledge and skin in the game are best placed to know what their area needs, and our transformative reforms will put local leaders at the centre of a network that will connect them with investment opportunities, bringing wealth and jobs to their communities.”

Deputy Prime Minister, Angela Rayner said: “Growth is at the top of this government’s agenda, and we want to see that growth in every region across the country. That means giving local leaders the powers they need to get their local economies moving, which is exactly what we are doing with our Devolution Priority Programme.

“Today I am meeting with England’s regional Mayors to talk about how to realise their communities’ huge potential for growth – because they know their areas best.”

Business and Trade Secretary, Jonathan Reynolds said: “The UK is one of the most connected places in the world to do business, and investors should be in no doubt that Britain is back on the global stage, helping attract investment into the most productive parts of the UK economy.

“Our forthcoming Industrial Strategy will supercharge eight key growth sectors in the UK economy, unleashing the full potential of our cities and regions and giving businesses the certainty they need as we lead the charge for the innovation and jobs of the future.”

Scottish Secretary, Ian Murray said: “It’s fantastic to see that Glasgow has been chosen as one of four areas where the UK Government will develop investment pipelines. The move will see us engage with local leaders and tap into their expertise to find out exactly where we can best put to use support from avenues like the National Wealth Fund and Office for Investment.

“Encouraging regional growth is key to our Plan for Change, to speed up investment in business and industry, creating jobs and opportunity right across the UK.

“The potential for growth in Scotland is phenomenal and we’ll explore every opportunity to maximise that growth, to put more money in people’s pockets and see living standards improved everywhere.”

Further action to drive regional growth will also include a review of the Green Book, the government guidance on value for money, and how it is being used across the public sector to provide objective, transparent advice on public investment across the country. This review will report back at the conclusion of the Spending Review this summer.

There will also be a new senior taskforce, chaired jointly by HMT and MHCLG permanent secretaries, who will work with the Greater Manchester Combined Authority to explore further devolution opportunities in skills, transport, and business support.

The government will expand this engagement to other Mayoral Authorities through senior official working groups, to explore how national government can work with local leaders to ensure they have the appropriate levers available to deliver their Local Growth Plans and unlock economic growth across England.

Mayors are already delivering transformative outcomes, such as Greater Manchester’s Adult Skills Fund, which has supported 17,000 residents in accessing new learning opportunities, and the Bee Network, which is integrating public transport across the region.

This follows the English Devolution White Paper, published at the end of last year, which set out an enhanced devolution framework to ensure strategic authorities have the powers and tools they need to meet local growth ambitions.

Tracy Brabin, Mayor of West Yorkshire said: “This government knows that the best way to achieve its growth mission is by working with mayors and backing our Local Growth Plans to boost the economy in all parts of the country.

“With the National Wealth Fund based here in the heart of the North, driving forward transformational investments in partnership with local leaders, we will deliver the well-paid jobs and the vibrant, well-connected places our communities need and deserve.”

Mayor of Greater Manchester, Andy Burnham said: “Greater Manchester is growing faster than the UK economy but we have got so much more to give to UK plc.

“The reforms announced today will help us to do just that and go much further and faster in support of the national growth mission.

“We particularly welcome the opportunity to work with Government to review the Green Book and how it is used to steer public investment, as the current approach is not working for the North of England.”

Richard Parker, Mayor of the West Midlands said: “This is a great show of faith by the Government in our regions to deliver the growth and high-quality jobs the country needs. The West Midlands is a hotbed of innovation and business talent ready to support the Government’s mission for growth.

“With the Government, I’m focused on delivering growth and with plans for a gigafactory, and three Investment Zones secured, we’re already making progress on creating thousands of new jobs. At the same time I am equipping our people with the skills to succeed in the industries of the future such as advance manufacturing, life sciences and green technology.

“With this new Strategic Partnership, the West Midlands will be one of the best places to do business, with an economy that creates real opportunities and benefits everyone across our communities.”

Cllr Susan Aitken, leader of Glasgow City Council and chair of the Glasgow City Region Cabinet said: “This is welcome recognition of the Glasgow City Region’s role as Scotland’s metro region, a vital motor in delivering prosperity and with a track record of securing and delivering on investment.

“Cities and city regions are the vital engine rooms of local and national economic growth and Glasgow’s selection as one of the four strategic partnerships to work with Government on maximising investment opportunities will, I’m sure, contribute to our ambition to become the most innovative, resilient and inclusive regional economy in the UK.”

Ministers to ‘bang the drum for Britain’ at Davos gathering

Chancellor and Business Secretary at World Economic Forum’s Annual Meeting in Davos this week
Ministers will meet CEOs and investors to bang the drum for British business
UK delegation to tell global business leaders and investors that the time to invest in Britain is now

Impressions from the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland 18 January 2025. Copyright: World Economic Forum/Thibaut Bouvier

Ministers will be banging the drum for Britain at Davos this week, with the most visible UK Government presence in recent years pitching the UK’s investment offer to top business chiefs.

Chancellor Rachel Reeves and Business and Trade Secretary Jonathan Reynolds will meet with leading members of the global business community to encourage them to put their money into the UK and back British business.

They will highlight the UK’s political and economic stability, making us an attractive place to do business. This is backed by an unashamedly pro-business government that is slashing burdensome regulation, launching ambitious planning reform, and leveraging our trade relationships with Europe, America, Asia, the Gulf and beyond to help businesses use Britain as their base to connect with exciting global markets.

The visit will continue to deliver on the government’s number one mission to grow the economy and raise living standards for working people, coming days after the IMF revised their growth forecast for the UK economy upwards for next year.

The government’s Davos attendance also follows a survey from consultancy firm PwC, who on Monday ranked the UK as the second most investible location globally after the U.S. – the first time the UK has secured this position in the 28-year history of the survey.

Chancellor of the Exchequer Rachel Reeves said: “Business leaders and investors need to know that the UK is where their businesses will flourish, so I’m meeting them face to face in Davos to make our case.

“We are one of the most exciting places in the world for them to put their money, with a history of innovation, a skilled workforce and a stable government that backs business. I will not rest until the UK economy is growing and this government is delivering on its Plan for Change, so we can put more money in people’s pockets.

“The time to invest in Britain is now.”

The Chancellor will be on the ground at Davos on Wednesday 22 and Thursday 23 January. She and the Business Secretary will speak at a Bloomberg event on Wednesday morning.

She will also speak at the Country Strategic Dialogue alongside Ruth Porat, president and CIO of Google and Julie Sweet, CEO of Accenture, to over 80 global CEOs and business leaders from across tech, financial services and green industries. In the evening the Chancellor will attend the Global Goals dinner.

On Thursday, the Chancellor will take part in a fireside chat with the Wall Street Journal to an audience of business leaders, following which she will speak at an economy roundtable with fellow finance ministers on global issues. The Chancellor will also speak at a lunch hosted by the CBI to an audience of 50 senior executives from UK-based businesses and international investors.

Meetings are planned with a wide range of CEOs and business leaders, including Jamie Dimon, CEO of JP Morgan, Jo Taylor, president of the Ontario Teachers’ Pension Plan, and David Solomon, CEO of Goldman Sachs – amongst others.

The Business and Trade Secretary will have bilateral meetings with many of his international trade counterparts, including Robert Habeck, Vice-Chancellor of Germany, Maros Sefcovic, Executive Vice-President of the European Commission and WTO Director-General Dr Ngozi Okonjo-Iweala.

He will also meet with a range of businesses and investors, including AON; Anglo American; AWS; Carlsberg; Capgemini; Honeywell; RWE; and SABIC.

Business and Trade Secretary Jonathan Reynolds said: “Britain is back in business under this government, and our Plan for Change is already delivering for working people.

“The UK is the most connected market on earth, and we will continue to be the home for innovative businesses looking to face outwards to the world. We’ve lifted barriers to investment and secured £63 billion at the International Investment Summit, creating thousands of jobs in the process.

“These investments promise better wages, stronger communities, and better services and I’ll be at Davos to build on this momentum.”

The UK Government’s presence at Davos will also be the most visible in years, with print and out of home marketing promoting the UK’s connectivity, openness and opportunity to coincide with the summit.

National Insurance funding ‘vital for councils’

Finance Secretary calls for clarity as local authorities set their budgets

The employer National Insurance increase must be fully funded to ensure local authorities have the resources they need to serve their communities, Finance Secretary Shona Robison has said.

Ahead of an appearance before the local government committee next week, Ms Robison again called on the UK Government to provide urgent clarity over the funding to help the Scottish Government and local authorities finalise their budgets.

The Finance Secretary said: “Scotland’s public services face a bill of more than £700 million as a result of the UK Government’s increase in employer National Insurance Contributions.

“There have been indications of likely funding reported in the media, but these fail to take account of the fact that we have a larger public sector per person than other parts of the UK, leaving us some £300 million short.

“It feels like Scotland is now being punished for having decided to employ more people in the public sector and to invest in key public services.

“We know local authorities are already under significant financial pressure. This will only continue to build unless the UK Government reimburses us in full for their tax increase. Councils are in the process of setting their Budgets now, so the sooner we have clarity over this issue the better – this is needed urgently.

“The Scottish Government will continue to work closely with COSLA to press the UK Government to provide the funding needed to support public services in Scotland.”

The First Minister and President of COSLA wrote to the Chancellor on 3 January, supported by 48 public and voluntary sector organisations to raise concerns at the impact of the increase to employer National Insurance contributions and to seek clarity on funding.

National Insurance Contributions: public sector costs – gov.scot

Chancellor calls on watchdog bosses to tear down regulatory barriers that hold back growth

Chancellor pledges to work with regulators to develop ambitious reforms.
Today’s summit marks the first in a series of meetings with the regulators ahead of publishing action plan.
Reeves welcomes initial ideas from regulators to boost innovation and investment, but pushes for more ambition.

The CEOs of key regulators were urged to ‘tear down regulatory barriers’ that hold back economic growth at a summit in the Treasury yesterday.

In a meeting hosted by the Chancellor of the Exchequer and Secretary of State for Business and Trade, chief executives at watchdogs covering sectors including railways, water, energy, aviation were told that economic growth is the absolute top priority for the government, as part of the Plan for Change for put more money in people’s pockets.

The meeting was the first in a series following a joint letter from the Prime Minister, Chancellor and Secretary of State for Business and Trade in December, in which the government asked the regulators to each propose five reforms to support growth in the coming year. Over the coming weeks, 17 regulators will be called in to have their proposals scrutinised as the government leaves no stone unturned to deliver growth.

At yesterday’s meeting, the Chancellor told the regulators that they would have a key role to play in delivering growth by helping to create a regulatory environment that unlocks innovation and investment, supports businesses to thrive and allows much needed infrastructure to be built.

The regulators agreed with the Chancellor that they have a role to play in driving growth but highlighted that there are some barriers, including the need to balance growth with their other legal responsibilities.

The Chancellor noted that the regulators’ responsibilities had accumulated over time and said she was open to hearing about where this was preventing them from taking clear, consistent and balance actions to drive growth.

She emphasised the importance of leadership to deliver a mindset shift on regulation, calling on each of the CEOs in the room to institute cultural change based on helping to deliver growth instead of excessively focusing on risk.

The Chancellor also promised that the government would work with them to develop and deliver important reforms by playing its part, including by making time for legislation where it is needed or using the upcoming Spending Review, and noted the Prime Minister’s promise to rip up regulation that blocks investment to make the regulatory regime fit for the modern age.

The Chancellor was clear that while some of the proposals already put forward were promising, she wanted to see greater ambition and urgency to drive economic growth. She emphasised that fresh ideas were needed and noted that the Government will also ask industry to come forward with their own ideas to deliver a more growth supportive regulatory environment.

She highlighted some specific and promising ideas she had heard from the regulators today. These included: driving greater responsiveness to business demands, particularly on planning and license applications; grant funding administered by Ofwat to drive innovation in the water sector supply chain; energy tariff reform; increasing access to rail operator efficiency data and innovative drone solutions which would unlock growth in the public sector.

The regulators agreed to continue working with the government on their proposals reform ahead of publishing an action plan in Spring, and welcomed today’s strategic discussion.

The Chancellor finished the meeting by reiterating that leadership matters, noting that every regulator would have to play their part to improve living standards across the country.

Following the meeting, Chancellor of the Exchequer Rachel Reeves said: “There’s no substitute for growth. It’s the only way to create more jobs and put more money in people’s pockets, which is why it’s at the heart of our Plan for Change.

“Every regulator, no matter what sector, has a part to play by tearing down the regulatory barriers that hold back growth. I want to see this mission woven into the very fabric of our regulators through a cultural shift from excessively focusing on risk to helping drive growth.”

Chancellor’s National Wealth Fund ‘fuels 8,600 jobs in six months’

8,600 jobs fuelled across the UK by the Chancellor’s National Wealth Fund since July, with almost £1.6 billion of private investment unlocked, delivering on the Plan for Change.
Jobs and investment spread across UK’s growth sectors from clean energy to digital infrastructure, driving government’s number one mission to grow the economy
New deal also announced today for North Wales with £92 million committed to support crucial improvements to coastal flood defence barriers protecting business and homes.

Thousands of jobs have been fuelled by the Chancellor’s National Wealth Fund in the last six months, with almost £1.6 billion of investment unlocked, driving growth across all corners of the UK.

The Chancellor began work just days into office to establish a new National Wealth Fund (NWF) that would invest in the new industries of the future to create good jobs and opportunity across every part of the country. With £27.8 billion of firepower, the NWF will help drive the government’s Plan for Change and turbocharge growth across the country to raise living standards in every part of the United Kingdom.

The jobs that have been created will support the digital and clean energy sectors, including 6,500 expected to be created in the retrofit sector across the UK, with the NWF providing a financial guarantee that will see Lloyds and Barclays deliver £1 billion of funding to deliver improvements such as low carbon heating and insulation in social housing.

New figures reveal almost £1.6 billion of private investment has been leveraged into projects across the UK’s clean energy and growth sectors over the past six months. This includes to support faster broadband connections for thousands of businesses and households in Cornwall, Yorkshire, Lincolnshire and Cumbria, fuelling economic growth.

Millions of pounds have also been committed to help West Suffolk Council to decarbonise its buildings and transition its fleet to electric vehicles, alongside supporting the expansion of a successful rooftop solar scheme.

This innovative investment model has the potential to be replicated by other local authorities and means more businesses can benefit from low cost, low carbon electricity, supporting local businesses and the growth of the clean energy sector.

It comes as today, the NWF announces a loan of £92 million to support Denbighshire County Council’s crucial improvements to coastal flood defence barriers in Denbighshire, North Wales, protecting businesses and homes against the devastating impact of flooding, creating jobs and growth in the construction industry.

Chief Secretary to the Treasury Darren Jones said: “Growth is our national mission, and the cornerstone of our Plan for Change that will improve living standards and put more money in people’s pockets.

“And the National Wealth Fund is playing a vital part in delivering economic growth, securing over a billion of private investment since July in industries that turbocharge growth in our economy and create good quality jobs across the UK”.

The Chancellor announced in October how the NWF would drive long-term investment in Britain, working hand in hand with business to create new high skilled jobs right across the UK, helping make people better off.

To mobilise investment at pace, the NWF will expand on the UK Infrastructure Bank’s offer including additional financial instruments so it is more catalytic and will take on more risk to have a greater impact:

The NWF has more capital with £27.8 billion – inheriting UKIB’s £22 billion and having an additional £5.8 billion.
It has a renewed focus to support the delivery of the wider industrial strategy, and the Government’s clean energy and growth missions. At least £5.8bn of the NWF’s capital will focus on the five sectors announced in the manifesto: green hydrogen, carbon capture, ports, gigafactories and green steel.
The NWF will have increased resources and focus on conducting more outreach to identify expanded project pipelines and structure innovative transactions.
It will have a strong regional mandate to unleash the full potential of our cities and regions.

Chancellor marks £600m of secure growth for UK economy in Beijing

Lifting of market access barriers across areas such as agri-food, helping British business compete on level-playing field and grow exports.
Pragmatic cooperation results in agreements worth £600 million to the UK economy over the next five years and sets course to deliver up to £1 billion.
The UK continues to challenge China on areas of disagreement, with the Chancellor raising concerns over China’s support for Russia’s illegal war, domestic interference and sanctions against British parliamentarians.

Working people and businesses across the UK will feel the benefits of agreements worth £600 million to the British economy, as agreed in the 2025 UK-China Economic and Financial Dialogue (EFD).

Chancellor Rachel Reeves was hosted by Vice Premier He Lifeng in Beijing today, in support of a stable and balanced UK-China relationship. Both sides agreed to deeper cooperation across areas such as financial services, trade, investment, and the climate to support secure growth, while being frank and open on areas of disagreement.

Overall, this government’s reengagement with China sets us on course to deliver up to £1 billion of value for the UK economy.

Chancellor of the Exchequer Rachel Reeves said: “The agreements we’ve reached show that pragmatic cooperation between the world’s largest economies can help us boost economic growth for the benefit of working people – a priority of our Plan for Change.

“More widely, today is a platform for respectful and consistent future relations with China. One where we can be frank and open on areas where we disagree, protecting our values and security interests, and finding opportunities for safe trade and investment.

Britain is a leading financial services partner for China. A range of financial services companies with a substantial presence in the market – HSBC, Standard Chartered, Prudential, Schroders, abdrn, Fidelity International and London Stock Exchange Group – accompanied the Chancellor as a business delegation on the trip. The granting of new licences and quota allocations for UK firms such as HSBC, Schroders, abrdn and Aspect Capital to enhance their business in China will further strengthen these ties.

Alongside this are initiatives to improve capital market connectivity – including a commitment to further enhance the UK-China Stock Connect and welcoming the launch of UK-China over-the-counter bond business – as well as initiatives on pensions, countering illicit finance and sustainable finance cooperation.

As part of this, China announced plans to issue an inaugural overseas sovereign green bond – to be used to finance environmentally sustainable projects – in London during 2025. The UK and China will also explore a Wealth Connect programme in recognition of the role asset management has to play in supporting growth. The agreements today in financial services will provide significant value to the UK economy over the next five years.

Both sides have committed to improving existing channels to discuss more sensitive issues, including the need to speak candidly about national and economic security. In her engagement, the Chancellor made clear UK concerns about imbalances in the Chinese economy, and both sides agreed to discuss industrial policy in support of a global level playing field.

The UK and China have agreed to further cooperation including through strengthening the existing UK-China clean energy partnership and committing to a dialogue on international development – to work together in tackling shared global challenges.

The lifting of barriers that restricted export to China across a range of goods and services will support UK exports and innovation, particularly in the agri-food sector where a package headlined by pork, wool, poultry, and pet food stands to boost UK trade with China and support new jobs. China has also agreed to continue to liberalise sectors that restrict foreign investment, such as education and culture, and support a level playing field and fair competition.

The EFD is also part of a wider programme making substantive progress in improving arrangements for UK exports and investors. This is reflected in new agreements on vaccine approvals, fertilizer, whisky labelling, legal services, automotives and accountancy which set course for the EFD to unlock £1 billion of value for the UK economy.

In her meetings with Chinese government counterparts yesterday the Chancellor was clear on the importance of open channels on areas where we disagree. She urged China to cease its support for Russia’s defence industrial base, which is enabling Russia to maintain its illegal war against Ukraine.

In recognition that upholding national security is this government’s first duty, the Chancellor raised this government’s deep concerns over cases involving interference in our democracy and malicious cyber activity emanating from China. Reeves also raised the case of British National Jimmy Lai and raised UK concerns around the respect of protected rights and freedoms in Hong Kong.

She raised human rights, including in Xinjiang, and forced labour. The Chancellor made clear that China’s sanctions against Parliamentarians are completely unwarranted and unacceptable.

Looking ahead, regular dialogues and technical exchanges to progress pragmatic cooperation have been established. This includes further engagement at Ministerial and official level on trade, science and tech, intellectual property, customs, sports and creative industries.

A full list of outcomes from the 2025 UK-China Economic and Financial Dialogue can be found here.

Chancellor on China: ‘Stable relationship that supports secure growth is in our national interest’

Chancellor visiting Beijing for the first UK-China Economic and Financial Dialogue since 2019 – seeking stability in relationship with world’s second largest economy to achieve secure and resilient growth.
Visit delivers on commitment to explore deeper economic cooperation made by Prime Minister and President Xi at G20 in November.
Reeves will also raise difficult issues, including China’s support for Russia illegal war in Ukraine and concerns over constraints on rights and freedoms in Hong Kong.

Making working people across Britain secure and better off is ‘at the forefront of the Chancellor’s mind’ while in Beijing this weekend for a UK-China Economic and Financial Dialogue (EFD).

Rachel Reeves will meet with her counterpart, Vice Premier He Lifeng, in the Chinese capital today for a series of conversations around the financial services relationship between the two countries, support for safe trade and investment and the importance of cooperation on global issues like climate change.

She will be joined by Bank of England Governor Andrew Bailey, Chief Executive of the Financial Conduct Authority Nikhil Rathi, and senior representatives from some of Britain’s biggest financial services firms as she seeks outcomes that benefit our businesses, support secure and resilient growth in the UK, and finance tackling shared global challenges.

The Chancellor’s visit follows a meeting between Prime Minister Keir Starmer and President Xi Jinping at the G20 Summit last autumn, where they discussed deepening the economic and trade relationship shared by the UK and China, in order to yield mutual benefits, support growth, and have candid discussion on issues where our views differ. As part of this, the Chancellor is expected to raise constraints on rights and freedoms in Hong Kong and to urge China to stop its material and economic support for the Russian war effort in Ukraine.

This is part of the consistent, long term and strategic approach that the government is taking in managing the UK’s relations with China, rooted in UK and global interests. The government will co-operate where it can, compete where it needs to, and challenge where it must, including to protect our values and national security as the first duty of government.

Ahead of her visit, Chancellor of the Exchequer Rachel Reeves said: “Growing the economy and raising living standards is front and centre of this government’s Plan for Change. That growth must be secure, resilient, and built on stable foundations, including through careful pragmatic cooperation with international partners.

“By finding common ground on trade and investment while being candid about our differences and upholding national security as the first duty of this government, we can build a long-term economic relationship with China that works in the national interest.”

While in Beijing, the Chancellor will also visit Brompton’s flagship store. The enduring British bike brand is celebrating its 50^th anniversary year, and its flourishing community in the Chinese capital as its foremost market is a major success story for UK exports to China.

In addition to building on the financial services relationship, the EFD will also seek to bring down barriers that British businesses face when looking to export or expand to China, supporting them to seize growth opportunities and follow in the footsteps of brands like Brompton, and other cornerstones of British culture and industry like Jaguar Land Rover, Unilever and Diageo – three companies whom Reeves will also meet with during her visit.

Reeves is also to visit Shanghai on Sunday to engage with representatives across British and Chinese business. Alongside London, the city is a leading global financial centre which has long been important for UK-China economic and financial links, including in financial services with the landmark financial market connectivity initiative between the London Stock Exchange and the Shanghai Stock Exchange entering its sixth year.

China is the world’s second largest economy and the UK’s fourth largest single trading partner, with a trade relationship worth almost £113 billion, and with exports to China supporting over 455,000 jobs in the UK in 2020.

UK stagflation crisis threat demands action

The UK economy is staring down the barrel of the stagflation gun, with stagnant growth and persistent inflation combining to create one of the most challenging financial environments in over a decade.

This is the stark warning from Nigel Green, CEO of deVere Group, as this week the 30-year gilt yield hit a staggering 5.25%—its highest point since the 2008 financial crisis—underscoring the scale of the issue.

He says: “Stagflation’s grip on the UK has been exacerbated by weak domestic growth, which under normal circumstances would prompt the Bank of England to lower interest rates.

“However, with inflation still uncomfortably high, policymakers find themselves in a precarious position, hesitating to make moves that could further weaken the pound and worsen price pressures.

Nigel Green continues: “For Chancellor Rachel Reeves, the situation is particularly dire. Her key fiscal rule—eliminating all non-investment borrowing by 2029—now hangs in the balance, as rising interest payments on debt eat into the Treasury’s capacity to act.

“Achieving this goal will demand either politically challenging tax increases or deep public spending cuts. Both measures will hurt economic growth, amplifying the stagflationary spiral.

“The rise in gilt yields signals growing investor caution about the UK’s economic outlook.

“Higher borrowing costs are creating ripple effects across sectors, from property to retail, as businesses and consumers alike face higher for longer interest rates. At the same time, the weakening pound, spurred by fears of stagnation, makes UK assets more attractive to international investors.

“For global investors, the UK’s predicament is not just a warning—it’s a call to action. Stagflation may erode domestic purchasing power, but it also opens the door to undervalued opportunities in key sectors, particularly for those with a long-term strategy.

“Fixed-income securities are more appealing given their higher yields, especially for those seeking safe havens in a turbulent global economy.”

While stagflation is a daunting challenge, it also forces innovation and adaptation.

“For investors with ties to Britain, this is the time to reassess portfolios, hedge against inflation, and identify sectors that can thrive in a stagflationary environment. History teaches us that industries such as energy, healthcare, and tech have shown resilience, even in periods of economic stagnation.

“The gilt market itself is worth watching closely. The recent yield spike suggests a shift in sentiment, but for those who act decisively, these higher yields could lock in significant returns over the medium term.

“Similarly, the weakening pound, while a burden for imports, is a boon for exporters and foreign investors looking to acquire UK assets at a relative discount.”

Nigel Green concludes: “The looming spectre of stagflation may sound like a warning bell, but it’s also a call for decisive action. The UK’s challenges are real, but so are the prospects for those who think globally and act strategically.”

Chancellor opens 100th banking hub in time for Christmas

Chancellor Rachel Reeves and Treasury minister Tulip Siddiq, have opened the 100th banking hub in Darwen, Lancashire.
Banking hubs have been set up in response to bank branch closures, with 350 set to be rolled out by 2029.
High streets up and down UK will be revitalised – helping raise living standards and deliver the Plan for Change

Chancellor of the Exchequer, Rachel Reeves, and Economic Secretary, Tulip Siddiq, have opened the UK’s 100th banking hub in Darwen, Lancashire, which has been set up in response to bank branch closures in the town.

The newly opened banking hub will give customers of the largest high street banks the ability to get cash out, deposit cheques and ensures that local residents have access to face to face banking services.

Kickstarting economic growth is the number one mission for this Government – something cemented in the Plan for Change launched last week, where the Prime Minister redoubled our commitment to raise living standards in every part of the United Kingdom. The roll out of banking hubs will be a significant boost for local people and businesses, helping to revitalise the local high street and raise living standards across the UK.

The opening of the 100th banking hub is a significant landmark on the road to delivering on the government’s manifesto commitment to work with industry to open 350 banking hubs by the end of this parliament.

Rachel Reeves, Chancellor of the Exchequer, said: “Reaching this milestone of 100 banking hubs is a huge step towards making sure that people across the country have access to essential face-to-face banking services.

“High streets are the beating heart of our communities but were neglected for too long under the previous government. We are revitalising our high streets with our target for 350 banking hubs, reforming business rates to make them fairer and clamping down on antisocial behaviour.”

Banking hubs are a collaborative industry initiative, set up in response to bank branch closures onhigh streets across the country.

Instead of one bank owning a branch, the responsibility is shared between the banks. This means that they can share the running costs and all operate in one convenient location.

All customers will benefit from Monday-Friday access to cash and basic banking services via a traditional counter service operated by the Post Office. Community bankers from each of the five banks with the largest number of customers in the area will also come in one day per week to assist their customers with more complex banking issues like debt advice, bereavement services and fraud support.

In the Darwen banking hub, the participating banks are NatWest, Santander, Lloyds, Halifax and Barclays, the banks with the most customers in that location. Opening the banking hub will protect access to cash and banking services for 10,000 local residents and 150 shops within 1 kilometre of Darwen town centre.

The 100th opening is a significant milestone. In September, Economic Secretary secured a historic agreement from industry to deliver on this commitment, with 230 hubs expected to be open by the end of next year, helping to revitalise towns and high streets up and down the country.

Tulip Siddiq, Economic Secretary to the Treasury, added: “We are delighted to see the continued growth of banking hubs, which are playing an essential role in meeting the needs of communities where traditional banking options have declined.

“These hubs are not only vital for residents and businesses, but they also play a key role in revitalising our high streets, bringing footfall back to town centres, and repurposing unused buildings for community benefit.

“The success of these hubs proves that shared banking services can provide a solution that benefits everyone, from residents to local businesses.”

The opening of banking hubs can play an important role in revitalising our high street and repurposing disused buildings in town centres all while providing a vital service to businesses and people in those communities.

Evidence from Brixham in Devon and Rochford in Essex where banking hubs have recently opened has backed this up, research from Cash Access UK the group that run banking hubs shows that almost half of businesses surveyed saying it has increased footfall in the town and 30% of residents saying that they visit the town more regularly and stay for longer because a banking hub has opened in the town.

Gareth Oakley, CEO, Cash Access UK, said: “Access to cash and face-to-face banking services remain vital to millions of people and businesses who rely on it.

“We’re delighted that banking hubs, alongside deposit services are proving to be successful and are making a real difference to communities and high streets up and down the country.”