Tag: Plan for Change

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’.

Pension reforms to go further to unlock billions to drive growth and boost working peoples’ pension pots

  • Prime Minister and Chancellor to tell leading CEOs that Britain is back and open for business.
  • Changes to pension rules will allow trapped surplus funds to be invested in the wider economy, fuelling economic growth.
  • Move is part of government action to remove blockages that are stopping growth – from regulation to planning processes.

Working people and businesses are set to benefit from new rules that will give more flexibility over how occupational defined benefit pension schemes are managed, as the government continues to remove blockages that are inhibiting its growth agenda that will improve lives of working people across the UK. 

Hosting a meeting with leaders of Britain’s biggest businesses in the City of London today (Tuesday 28 January), the Prime Minister and the Chancellor will set out the details of changes and tell some of the country’s leading CEOs that Britain is back and open for business.

At the roundtable, the PM and Chancellor will outline how restrictions will be lifted on how well-funded, occupational defined benefit pension funds that are performing well will be able to invest their surplus funds. 

This follows action taken by the government last week to bring a renewed focus on growth from some of the UK’s biggest regulators, a shake-up to legal challenges on planning applications, and new “brownfield passports” to speed up housing in commuter hotspots.

Prime Minister, Keir Starmer said: “The number one mission of my government is to secure growth, drive higher living standards for everyone, and get more money into people’s pockets.

“To achieve the change our country needs requires nothing short of rewiring the economy. It needs creative reform, the removal of hurdles, and unrelenting focus. Whether it’s how public services are run, regulation or pension rules, my government will not accept the status quo.

“Today’s changes will unlock billions of investment, pushing forward in delivering my Plan for Change.”

Chancellor of the Exchequer, Rachel Reeves said: “I know this government and businesses are united on growth being the top priority for our economy, which is why I am fighting every day to tear down the biggest barriers to growth, taking on regulators, planning processes and opposition to this urgent mission.“

The Prime Minister and Chancellor will tell CEOs from some of the UK’s most successful companies that that the government is seeking to create the best possible conditions for the private sector to thrive.

They will promise to work in partnership with businesses, to deliver high-quality jobs across the country, and the economic growth that will fund the schools, hospitals and roads that we all rely on.

Pension trustees and the sponsoring employers could then use this money to increase the productivity of their businesses – to boost wages and drive growth or unlock more money for pension scheme members. 

High growth and more productive businesses boost the size of the economy which in turn will fund our vital public services.

This more efficient approach demonstrates that the government has been listening to business, and will give businesses more flexibility, allowing trapped surplus funds to be invested into the wider UK economy, or given to scheme members as additional benefits.

Where trustees agree to share a portion of scheme surplus with a sponsoring employer, the employer may choose to invest these funds in their core business, for example to purchase equipment or supplies, and/or provide additional benefits to members of the pension scheme.

Approximately 75% of schemes are currently in surplus, worth £160 billion, but restrictions have meant that businesses have struggled to invest them.

These reforms build on the Chancellor’s Mansion House reforms which will create pension megafunds as part of the biggest set of pension reforms in decades, unlocking billions of pounds of investment in exciting new businesses and infrastructure and local projects.     

Over £1.1 trillion is held by pension funds in the UK and defined contribution pension schemes are set to manage £800 billion worth of assets by the end of the decade. This Government is determined to encourage these pension funds to deliver investment and drive economic growth – which is the only way to make people better off.    

Jonathan Lipkin, Director of Policy, Strategy & Innovation at the Investment Association said: “Unlocking surplus capital from defined benefit schemes has the potential to both boost UK growth by opening up investment opportunities for companies and their stakeholders, as well as the possibility of higher pensions for scheme members. 

“With around £1.1 trillion in assets, defined benefit schemes already make a significant contribution to the funding of the UK economy and public services. 

With the right guardrails in place, the government’s proposals could help channel more funding into the economy, by enabling schemes to invest more widely and take on greater risk, while allowing for members to receive an uplift to pension benefits.

Zoe Alexander, Director of Policy and A2dvocacy at the Pensions and Lifetime Saving Association, said: “The PLSA backs surplus release, with the right protections in place to ensure member benefits are secure. 

“Surpluses could be used to increase DB scheme benefits or could be redirected to fund contributions to sponsoring employers’ defined contribution workplace schemes.

“Lowering the legislative threshold for allowing returns of surplus could potentially encourage trustees, in conjunction with their employers, to adopt a more ambitious mindset and take on slightly riskier investment strategies for their DB assets, including greater investment in UK assets.”

Patrick Heath-Lay, Chief Executive Officer for The People’s Pension, said: “It is positive news to see the government is looking at the pension industry as a whole. This will help unlock more of the £2.9trillion that is held in UK pension savings, to benefit savers and the economy alike.

“We look forward to other pension schemes following our plans and outlining how they will invest in private markets.”

The roundtable discussion will focus on the government’s partnership approach to growth with business, including how regulation can better support the Growth Mission, and the role of business in achieving the UK’s ambitions in AI which the Prime Minister unveiled earlier this month. Every regulator has a role to play in the Growth Mission and the Chancellor is hosting a series of roundtables with the 17 regulators that the Prime Minister wrote to in December, to discuss their proposals to support growth in the coming year. 

The meeting with CEOs comes days after the Chancellor’s return from the World Economic Forum, where she pitched Britain’s investment credentials and let global business leaders know that the UK is open for business again.

She championed early reforms to planning, pensions, and regulation that make it easier to do business in Britain and remove barriers investors from overseas face.

On Wednesday, the Chancellor will make a speech where she will set out plans to push through further planning reforms to get Britian building again, rip up regulatory barriers so we can encourage more investment into the UK and announcements to boost trade and investment.

The government will set out the details of the surplus policy in its response to the Options for Defined Benefits consultation, due this Spring.

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.”

Ex-high street boss to ‘keep Britain working’

Review into business support for disabled and long-term sick

A new “Keep Britain Working” review has been launched today (Friday 24 January) to explore how to urgently support people with long-term illnesses or disabilities back into work, and to stay in work.

  • Independent review led by former John Lewis boss, Sir Charlie Mayfield, officially underway.
  • Review to investigate how government and businesses can work together to support ill and disabled people into work, boost living standards and grow the economy as part of Plan for Change.
  • Intervention comes as government is expected to publish major health and disability benefit reforms this Spring.

Former chairman of John Lewis Partnership, Sir Charlie Mayfield, will lead the Keep Britain Working Review to investigate the factors behind spiralling levels of inactivity, and how government and businesses can work together to turn this around, to get Britain working again. 

The review will be the first of its kind, and following the launch of the Get Britain Working White Paper, will be one part of the government’s Plan for Change to kickstart economic growth in partnership with businesses, drive up prosperity and raise living standards across the UK.

With over a third of working age people reporting a long-term health condition and around a quarter classed as disabled, the latter group being three times more likely to be not in work or looking for work, the scale of the challenge is stark.

Beginning today, the review will move at pace concluding in the Autumn, with Sir Charlie Mayfield meeting businesses and health and disability organisations across the country to identify the scale, trends, obstacles and opportunities for companies when recruiting and retaining ill and disabled people. 

This phase will conclude in Spring with a report based on the findings from his conversations with company bosses, employees who have been supported to stay in work, and organisations who help those out of work, to inform wider engagement. Recommendations to the government are expected later this year.

This will be part of the government’s plan to boost employment by breaking down barriers to opportunity and improving people’s living standards through work and life-changing support, building on the latest data this week showing real earnings have increased by 2.5% on the year.

Sir Charlie Mayfield, who was also Chair of the British Retail Consortium and Chair of the UK Commission for Employment and Skills, said: “Losing people from the workforce because of ill-health or disability is bad for many of the individuals, for the businesses employing them, and for the wider economy.

“It’s a growing problem for us all and it’s one that’s more likely to be resolved by business and government working together.

“I’m looking forward to engaging closely with businesses, government departments and the many organisations committed to improving our performance here.”

The review, which will identify measures to help ill and disabled people get into work and stay in work, comes ahead of significant reforms to health and disability benefits expected in the Spring. 

Work and Pensions Secretary, Rt Hon Liz Kendall MP, said: “Millions of people have been left without support to get into work and on at work, and completely held back from reaching their potential for far too long, and the record-high cost of long-term sickness benefits is evidence of that fact.

“That’s why I am pleased to have Sir Charlie leading this review, bringing a wealth of experience and helping us to get people into work, and most importantly keep them in work, so we can boost living standards and get our economy growing.”

Business and Trade Secretary, Rt Hon Jonathan Reynolds, said: “It isn’t right that too many businesses are missing out on the people they need, while those who want to work can’t because of long-term sickness. 

“Solving this problem is one of the greatest challenges facing the labour market, with years of poor support blocking those with great talent from helping drive our economy forward.

“The government is on the side of working people and is unashamedly pro-business. That’s why this review will be critical in getting businesses the people they need to unlock their full potential.”

Rain Newton-Smith, CEO of the CBI, said: “Lower rates of employment for people with long-term health conditions or disabilities is a tragic waste of potential that holds back economic growth and impacts on well-being. 

“It denies people the opportunity to improve their personal financial security through work and prevents businesses from using their valuable skills and experience to grow the economy. 

“Sir Charlie’s review is a welcome opportunity for business and government to co-design solutions that have a real impact.”

This business engagement is part of the Westminster government’s Get Britain Working White Paper which is currently progressing the biggest employment reforms in a generation so the UK can reach an ambitious 80% employment rate. 

As part of the plan, Jobcentre’s are to change their focus from monitoring and managing benefit claims to skills and careers, mental health support will be expanded to reduce waiting lists in areas with the highest levels of economic inactivity, and mayors will be empowered to join up local work, health and skills support to tackle the root causes of inactivity in their areas.

Prime Minister clears path to ‘get Britain building’

Nuclear plants, trainlines and windfarms will be built quicker thanks to changes to the rules to stop blockers getting in the way of the government’s Plan for Change

  • Major infrastructure needed for growth and clean energy to no longer be held up in the courts, as government scraps excessive three attempts to challenge decisions in the courts
  • Households set to benefit from reduced energy bills in the long term and faster commutes through quicker construction of renewable energy and transport projects
  • Latest step to drive economic growth – the number one priority in the Plan for Change – sending positive message to business looking to build

Nuclear plants, trainlines and windfarms will be built quicker thanks to changes to the rules to stop blockers getting in the way of the government’s Plan for Change.

Current excessive rules mean unarguable cases can be brought back to the courts three times – causing years of delay and hundreds of millions of cost to projects that have been approved by democratically elected ministers, while also clogging up the courts.

Data shows that over half – 58% – of all decisions on major infrastructure were taken to court, getting in the way of the government’s central mission to grow the economy, and put more money in hardworking people’s pockets.

The government today confirms this will be overhauled, with just one attempt at legal challenge for cynical cases lodged purely to cause delay rather than three. 

This approach will strike the right balance between ensuring ongoing access to justice and protections against genuine issues of propriety, while pushing back against a challenge culture where small pressure groups use the courts to obstruct decisions taken in the national interest.

On average, each legal challenge takes around a year and a half to be resolved – with many delayed for two years or more – and the courts have spent over 10,000 working days handling these cases. This is holding back working people and is getting in the way of our progress as a nation. Examples include:

  • East Anglia wind farms were delayed by a group which dragged the case through the courts and lost at every turn – delaying it for over two years. 
  • Sizewell C, which was taken to court by a small group of activists, with the High Court dismissing it and describing aspects as “utterly hopeless” – despite this, work was left uncertain for two years and legal costs increased 
  • The A47 National Highway Project, which is improving our roads, was dragged to court by a former Green Councillor – his case was eventually dismissed as having ‘no logical basis’, after delaying the project by two years.

These cases put a hold on people’s lives – harming our efforts to drive down energy bills with clean energy, getting in the way of road improvements which will help people get to work on time, strangling the dream of homeownership and – importantly – scaring away business from building in the UK.

It also wastes tax money, with major road projects paying up to £121 million per scheme being dragged through the courts. 

These changes will send a strong signal to global firms looking to do business – that the UK is a great place to invest. 

Prime Minister Keir Starmer said: “For too long, blockers have had the upper hand in legal challenges – using our court processes to frustrate growth.

“We’re putting an end to this challenge culture by taking on the NIMBYs and a broken system that has slowed down our progress as a nation.”

“This is the government’s Plan for Change in action – taking the brakes off Britain by reforming the planning system so it is pro-growth and pro-infrastructure.

The current first attempt – known as the paper permission stage – will be scrapped. And primary legislation will be changed so that where a judge in an oral hearing at the High Court deems the case Totally Without Merit, it will not be possible to ask the Court of Appeal to reconsider. To ensure ongoing access to justice, a request to appeal second attempt will be allowed for other cases.

This announcement marks another victory for the ‘builders over the blockers’, with the government proving – with actions – that it is set on kickstarting growth and putting more money back in people’s pockets.

It follows a series of interventions from the Prime Minister – dating back to the State Opening of Parliament where he outlined plans to introduce the Planning and Infrastructure Bill to expedite the delivery of high-quality infrastructure. 

Since then, the government is speeding up 150 major economic infrastructure projects, including railways and roads – doubling the record of the previous government, unlocking growth, and taking the brakes off Britain. 

The government has also set out major reforms to end the block and delay to building homes and infrastructure from current environmental obligations. 

A new Nature Restoration Fund would enable developers to meet their environmental obligations more quickly and with greater impact – accelerating the building of homes and improving the environment.

The new common-sense approach doesn’t allow newts or bats to be more important than the homes hardworking people need, or the roads and hospital this country needs.

Growth is the number one Mission of this government. That is why the Prime Minister’s Plan for Change is focused on boosting growth to put more money in working people’s pockets and improving living standards across the country.

Since the election, real wages have grown at the fastest rate in three years, worth an extra £20 a week after inflation, and the average two-year fixed mortgage rate is now about half a percentage point lower than it was at the election.  

This UK says it will government will not relent in its determination to deliver economic growth and fight for working people, which is why the Chancellor hosted regulators in No11 last week to discuss how they can support growth going forward. She will give a speech on economic growth next week to drive home this determination.

Lord Banner KC, author of the Independent review into legal challenges against Nationally Significant Infrastructure Projects, said: “My review concluded that there is a clear case for streamlining judicial reviews on consenting decisions for nationally significant infrastructure projects, given that delays to these projects cause real detriment to the public interest. 

“In the course of my review, I saw broad consensus from claimants to scheme promoters that a quicker system of justice would be in their interests, provided that cases can still be tried fairly.

“I am therefore pleased to see the government acting on the back of my review. In particular, reducing the number of permission attempts to one for truly hopeless cases should weed out the worst offenders, without risking inadvertent delays because judges choose to err on the side of caution.

“I look forward to seeing these changes help to deliver a step change in the pace of infrastructure delivery in the months and years ahead.”

£60 million boost for creative industries to turbocharge growth

Hundreds of creative businesses and projects across the UK are to receive government funding to help them grow as part of a major boost to the economy – marking the first step of the Government’s Sector Plan for the creative industries.

  • Culture Secretary hosts major economic growth summit in Gateshead for creative industries and announces key priority areas
  • Marks first step towards delivering Sector Plan, as part of the government’s modern Industrial Strategy
  • £60 million package of support to drive growth, including £40 million investment for start-up video game studios, British music and film exports and creative businesses outside of London
  • British Business Bank will increase its support for the sector to help the UK’s Creative Industries realise their full growth potential, while government also launches Soft Power Council to drive investment

Hundreds of creative businesses and projects across the UK are to receive government funding to help them grow as part of a major boost to the economy – marking the first step of the Government’s Sector Plan for the creative industries.

Culture Secretary Lisa Nandy is bringing together more than 250 creative businesses and cultural leaders at the The Glasshouse International Centre for Music, in Gateshead today. As part of its modern Industrial Strategy, she will set out how the Government will work together with the sector to increase growth and investment, starting with a £60 million package of government support.

This includes investments for start-up video game studios, grassroots music venues and creative businesses to boost British music and film exports, which will facilitate investment and innovation in communities, in turn supporting businesses and employment. 

Growth is the number one mission of the Government’s Plan for Change, so we can put more money in people’s pockets. Today’s summit is the first step towards delivering the Creative Industry Sector Plan, as part of the UK’s modern Industrial Strategy. It will set out the enormous growth potential of the sector and where the biggest opportunities are at home and in new markets abroad.

It will identify what key barriers are currently holding back the sector’s growth potential, and government and industry’s shared commitment to overcoming them, laying the groundwork for the publication of the full Creative Industries Sector Plan in the spring. 

At the summit, the Culture Secretary will also announce that the priority regions for Creative Industries are the  North East, Greater Manchester, Liverpool City Region, West Yorkshire, West Midlands, Greater London, West of England, South Wales, Glasgow, Edinburgh-Dundee corridor, and Belfast. 

Alongside this, the Government will provide additional funding, to be agreed as part of the Spending Review, to six Mayoral Combined Authorities (North East, Greater Manchester, Liverpool City Region, West Yorkshire, West Midlands, West of England) . This will maximise the strengths of these areas to deliver growth and builds upon progress to provide an attractive business environment and encourage strong, continued investment in the creative industries for years to come.

As the Government ramps up support for the sector, the Culture Secretary will also announce that we will bring forward changes so that shorter apprenticeships are available from August 2025, recognising the particular needs of the creative industries, as one of our first steps towards a more flexible Growth and Skills Levy.
The government is working with industry, including through a Creative Industries Taskforce chaired by Baroness Shriti Vadera and Sir Peter Bazalgette, on the sector plan and there will be more detail and policy announcements made in the months ahead. 

Culture Secretary Lisa Nandy said: “From film and fashion to music and advertising, our creative industries are truly world-class and play a critical role in helping us deliver on this Government’s mission to drive economic growth in all parts of the UK.

“Our £60 million funding boost will support creative and cultural organisations across the UK to turbocharge growth by transforming local venues, creating jobs, supporting businesses and spreading opportunity across the country.

“But this is by no means the limit of our ambitions, which is why the creative industries are at the heart of the forthcoming Industrial Strategy and will continue to play a key part in this Government’s Plan for Change.”

The Government will create the most attractive business environment to encourage strong, continued investment in the creative industries for years to come. The Government will design the sector plan with business, who have set out the barriers to growth, including skills and access to finance.

The Government will design the sector plan with business, who have set out the barriers to growth, including skills and access to finance. As a result the Government is also making a significant signal of intent ahead of the Spending Review by announcing positive changes to the way the British Business Bank, UK Research and Innovation and skills policy will prioritise the Creative Industries.

The British Business Bank, which supports £17.4 billion of finance to over 64,000 smaller businesses, has committed to increase its support for creative businesses to access the finance they need to grow. 

Chancellor of the Exchequer Rachel Reeves said: “Our number one mission is to grow the economy and our creative industries are a British success story with a big part to play.

Building on our plans to boost our AI sector, this is another step as we go further and faster to deliver growth so we can put more money in people’s pockets.”

Today’s summit comes as the Culture Secretary and Foreign Secretary David Lammy also confirmed the membership of a new Soft Power Council. The council will act as an advisory board to the UK Government and will bring together soft power and foreign policy experts to champion the UK abroad, and drive investment and growth at home.

Members include former rower and chair of UK Sport Katherine Grainger, former athlete and television presenter Baroness Grey-Thompson and V&A director Tristram Hunt.

Foreign Secretary David Lammy said: “Soft power is fundamental to the UK’s impact and reputation around the world.  I am often struck by the enormous love and respect which our music, sport and educational institutions generate on every continent.

“But we have not taken a sufficiently strategic approach to these huge assets as a country. Harnessing soft power effectively can help to build relationships, deepen trust, enhance our security and drive economic growth. 

“That is why I have created the Soft Power Council to channel British expertise as we look to re-imagine Britain’s role on the world stage, reinvigorate alliances and forge new partnerships.”

Starmer sets out blueprint to ‘turbocharge AI’

Artificial intelligence ‘will deliver a decade of national renewal’ as part of a new plan announced today

  • AI to drive the Plan for Change, helping turbocharge growth and boost living standards
  • public sector to spend less time doing admin and more time delivering the services working people rely on
  • dedicated AI Growth Zones to speed up planning for AI infrastructure
  • £14 billion and 13,250 jobs committed by private tech firms following AI Action Plan

Artificial intelligence will be ‘unleashed across the UK to deliver a decade of national renewal’, under a new plan announced today (13 January 2025).

In a marked move from the previous government’s approach, the Prime Minister is throwing the full weight of Whitehall behind this industry by agreeing to take forward all 50 recommendations set out by Matt Clifford in his game-changing AI Opportunities Action Plan.

AI is already being used across the UK. It is being used in hospitals up and down the country to deliver better, faster, and smarter care: spotting pain levels for people who can’t speak, diagnosing breast cancer quicker, and getting people discharged quicker. This is already helping deliver the government’s mission to build an NHS fit for the future.

Unveiling details of the government’s AI Opportunities Action Plan today, the Prime Minister will say AI can transform the lives of working people – it has the potential to speed up planning consultations to get Britain building, help drive down admin for teachers so they can get on with teaching our children, and feed AI through cameras to spot potholes and help improve roads. 

Backing AI to the hilt can also lead to more money in the pockets of working people. The IMF estimates that – if AI is fully embraced – it can boost productivity by as much as 1.5 percentage points a year. If fully realised, these gains could be worth up to an average £47 billion to the UK each year over a decade.

Today’s plan mainlines AI into the veins of this enterprising nation – revolutionising our public services and putting more money in people’s back pockets. Because for too long we have allowed blockers to control the public discourse and get in the way of growth in this sector.

The plan puts an end to that by introducing new measures that will create dedicated AI Growth Zones that speed up planning permission and give them the energy connections they need to power up AI.

The UK occupies a unique place in the world. We can learn from the US’s and EU’s approach – delivering the dynamism, flexibility and long-term stability that we know businesses want. 

The Prime Minister, Keir Starmer, said: “Artificial Intelligence will drive incredible change in our country. From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.

“But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.

“Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services.

“That’s the change this government is delivering.”

It comes as three major tech companies – Vantage Data Centres, Nscale and Kyndryl – have committed to £14 billion investment in the UK to build the AI infrastructure the UK needs to harness the potential of this technology and deliver 13,250 jobs across the UK. That’s on top of the £25 billion in AI investment announced at the International Investment Summit.

Vantage Data Centres – which is working to build one of Europe’s largest data centre campuses in Wales – plans to invest over £12 billion in data centres across the UK – creating over 11,500 jobs in the process.

Kyndryl – the world’s largest IT infrastructure services provider and a leading IT consultancy – announces plans to create up to 1,000 AI-related jobs in Liverpool over the next three years. This new tech hub will share the Government’s ambition to roll AI out across the country to help grow the economy and foster the next generation of talent.

Nscale – one of the UK’s leading AI companies – has announced a $2.5 billion investment to support the UK’s data centre infrastructure over the next three years. They have also signed a contract to build the largest UK sovereign AI data centre in Loughton, Essex by 2026.

The plan includes initiatives that will help make the UK the number one place for AI firms to invest, which is vital if Britain is to be at the forefront of this industry and be a changemaker rather than a change-taker.

The key changes include:

  • forging new AI Growth Zones to speed up planning proposals and build more AI infrastructure. The first of these will be in Culham, Oxfordshire
  • increasing the public compute capacity by twentyfold to give us the processing power we need to fully embrace this new technology – this starts immediately with work starting on a brand new supercomputer
  • a new team will be set up to seize the opportunities of AI and build the UK’s sovereign capabilities
  • creating a new National Data Library to safely and securely unlock the value of public data and support AI development
  • a dedicated AI Energy Council chaired by the Science and Energy Secretaries will also be established, working with energy companies to understand the energy demands and challenges which will fuel the technology’s development – this will directly support the government’s mission to become a clean energy superpower by tapping into technologies like small modular reactors.

Taken together, the 50 measures will make the UK irresistible to AI firms looking to start, scale, or grow their business. It builds on recent progress in AI that saw £25 billion of new investment in data centres announced since the government took office last July.

This Action Plan is also at the heart of the government’s Industrial Strategy and the first plank of the upcoming Digital and Technology Sector Plan, to be published in the coming months.

Science, Innovation, and Technology Secretary, Peter Kyle said:  ”AI has the potential to change all of our lives but for too long, we have been curious and often cautious bystanders to the change unfolding around us. With this plan, we become agents of that change.   

“We already have remarkable strengths we can tap into when it comes to AI – building our status as the cradle of computer science and intelligent machines and establishing ourselves as the third largest AI market in the world.   

“This government is determined that the UK is not left behind in the global race for AI, that’s why the actions we commit to will ensure that the benefits are spread throughout the UK so all citizens will reap the rewards of the bet we make today. This is how we’re putting our Plan for Change in motion.”

The Chancellor of the Exchequer Rachel Reeves MP said: “AI is a powerful tool that will help grow our economy, make our public services more efficient and open up new opportunities to help improve living standards.

“This action plan is the government’s modern industrial strategy in action. Attracting AI businesses to the UK, binging in new investment, creating new jobs and turbocharging our Plan for Change. This means better living standards in every part of the United Kingdom and working people have more money in their pocket.”

Matt Clifford CBE said:  ”This is a plan which puts us all-in – backing the potential of AI to grow our economy, improve lives for citizens, and make us a global hub for AI investment and innovation.   

“AI offers opportunities we can’t let slip through our fingers, and these steps put us on the strongest possible footing to ensure AI delivers in all corners of the country, from building skills and talent to revolutionising our infrastructure and compute power.”

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 50th 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.”

Business leaders join forces to get thousands of offenders into work

Major new drive to get offenders into stable jobs and away from a life of crime

  • New Employment Councils to bring probation, prisons and local businesses together
  • Household UK names including the Co-op and Oliver Bonas backing new initiative
  • Scheme aims to get more offenders into work to cut crime as part of Plan for Change

Bosses from household names including Greggs, Iceland and COOK will be among those to sit on new Employment Councils supporting offenders serving their sentence in the community into work.

They will build on the success of prison Employment Advisory Boards, which were created by Lord Timpson before he became a government minister. These have brought local business leaders into jails to improve education and prisoners’ ability to get work when released.

The new regional Employment Councils will expand this model out to the Probation Service and the tens of thousands of offenders serving their sentences in the community.

Each council will also have a representative from the Department for Work and Pensions (DWP) to help improve links with local job centres.

The initiative was a manifesto commitment and will play a crucial role in the Government’s mission to make streets safer by tackling reoffending under the Plan for Change.

Around 80% of all crime is reoffending but latest data shows offenders employed six weeks after leaving prison had a reoffending rate around half of those out of work.

Alongside breaking the cycle of crime, getting offenders into work helps employers fill vacancies, build their businesses, plug skill gaps and boost the UK economy.

Minister for Probation, Prisons and Reducing Reoffending, James Timpson, said: “Getting former offenders into stable work is a sure way of cutting crime and making our streets safer. That’s why partnering with businesses to get more former offenders into work is a win-win.

“The Employment Advisory Boards I spear-headed have made huge progress and now these Employment Councils will expand that success to steer even more offenders away from crime as part of our Plan for Change.”

Employment Councils will provide support to frontline probation staff already involved in getting offenders into work. They will provide them with a greater understanding of the local labour market and help build better relationships with suitable employers.

Further support from the DWP will help link offenders with work coaches placed at job centres throughout the country.

These coaches will be on hand to get offenders job-ready through mock interviews, CV advice and by sharing tips on how to secure further training opportunities in the community.

DWP Lords Minister, Baroness Maeve Sherlock, said: ”As well as making our streets safer, helping offenders into work will enable employers to fill vacancies and plug our skills gaps.

“This work is vital in our Plan for Change as we begin our task of fixing the fundamentals of the social security system and progress with wider work to reduce poverty, put more money in people’s pockets and keep our streets safe.

“That’s why I am pleased that DWP staff will also be a part of the new regional Employment Councils to directly connect them with the frontline support delivered every day by Jobcentre staff across the country – offering work experience and access to our employment programmes.”

Research from the Ministry of Justice shows that 90% of businesses that employ ex-offenders agreed that they are good attenders, motivated and trustworthy

Rosie Brown, co-CEO of COOK, said: “A job provides a key way to help people restore their lives and relationships following a stretch in prison.

“In return, we get committed, loyal team members to help us build our business.  Re-offending is reduced, and families, communities, and society as a whole wins.”

Employment Councils will serve as the successor to regional Employment Advisory Boards and will officially bring together probation, prisons, local employers and DWP under one umbrella for the first time, with a renewed focus on broadening support to offenders in the community.

The Boards will continue at 93 individual prisons but the addition of regional Employment Councils will help prison leavers look for work across an entire region, not just the immediate vicinity of the last prison they were in.