UK’s first female Chancellor, Rachel Reeves in her first speech has announced mandatory housing targets and the lifting of the onshore wind ban as part of an ambitious plan to “get Britain building again.”
Fulfilling a key pledge in Labour’s election manifesto, Reeves announced the creation of a new task force dedicated to accelerating stalled housing projects, with a commitment to build 1.5 million homes over the next five years, including affordable and council homes.
“We’re not in the business of reneging on our manifesto commitments,” said Reeves following Labour’s victory last Thursday. “We’ve received that strong mandate. We’re going to deliver on that mandate,” she added.
The key targets Reeves announced the government will:
• Restore mandatory housebuilding targets
• Build 1.5 million homes by the end of this parliament
• End the onshore wind farm ban
• Create a new task force to expedite stalled housing sites
• Support local authorities with 300 additional planning officers
• Review previously turned-down planning applications that could benefit the economy
• Prioritize brownfield and greybelt land for development to meet housing targets
• Reform the planning system to enhance infrastructure delivery
• Outline new policy intentions for critical infrastructure in the coming months
Highlighting the importance of these targets, Reeves said, “We will bring back those mandatory housing targets so the answer cannot always be no. It’ll be up to local communities to decide where the housing is built, but it has to be built.”
The Chancellor noted the immediate steps already taken, including the approval of 14,000 new homes across Liverpool Central Docks, Worcester, Northstowe, and Langley Sutton Coldfield. Deputy Prime Minister Angela Rayner is also reconsidering planning appeals for data centers in Buckinghamshire and Hertfordshire. Unresolved infrastructure projects will be prioritized.
Before the election, Reeves warned of inheriting “the worst set of circumstances since the Second World War,” and noted, “What I have seen over the past 72 hours has only confirmed that.” She referred to a Treasury analysis that showed “if the UK economy had grown at the average rate of other OECD economies since 2010, it would have been over £140 billion larger, potentially generating £58 billion in tax revenues in 2023 to fund public services”.
Reeves plans to present this analysis to Parliament before the summer recess, with a full Budget scheduled for the autumn, including a forecast by the Office for Budget Responsibility.
In response to inquiries about when economic growth can be expected, Reeves stated, “We are now getting on with delivering [growth]. These are our first steps to bring back economic growth. I mean business and we are getting on with that work to unlock that growth.”
Besides housing targets, Reeves also confirmed that the new Labour government will not increase National Insurance or VAT. The policies aim to boost economic growth and create a business-friendly environment in Britain.
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