Recent gloomy economic data in the UK has emboldened chancellor Rachel Reeves to pursue a more aggressive growth agenda, despite Labour sensitivities and tensions with regulators, according to government officials.
Against the backdrop of a stagnant economy, bond market turmoil, and a survey showing a sharp increase in job cuts by UK businesses, Reeves is set to deliver a “growth” speech next week.
Colleagues say Reeves, intent on expediting key investment projects, has decided to push for faster and more extensive growth measures following recent challenges she faced.
Reeves is aiming to use the authority of the Treasury to advance her vision for the future, even if it means wading into politically contentious territory.
Despite facing criticism for certain decisions, such as advocating for Shein to list in London, Reeves has shown resilience in the face of adversity, earning her the moniker of “the Iron Chancellor.”
While her actions have garnered private approval from some Conservatives, they have also stirred controversy within her own party.
Reacting to market turbulence earlier in the year, Reeves has displayed strength and decisiveness against the backdrop of challenging economic conditions.
She has also made bold moves, aligning with the banks in a Supreme Court case and signaling support for controversial projects like airport expansion.
With a focus on stimulating growth, Reeves has instructed the Treasury to prioritize investment over budgeting, working on various projects to attract funding into the UK.
One such project, known as Project Mandarin, involves discussions with Universal theme park developers to establish a new attraction near Bedford.
Executives involved in the project estimate it could generate significant economic value and are in productive talks with the UK government.
In addition to the theme park venture, Reeves is also in negotiations with AstraZeneca to revive a vaccine manufacturing site in Merseyside, and is expected to signal support for a river Thames crossing project in east London.
While facing criticism for her decisions, Reeves’s efforts to spur growth are being closely monitored, particularly by northern mayors eager to see economic development outside of the south east.
