This month, the flood of grim economic data of the United Kingdom provided to Chancellor Rachel Reeves to “permission” to promote a more aggressive growth agenda, according to high government officials, trampling the sensitivity of the Labor and put it in war with regulators.
The Chancellor will present the “growth” speech against the stagnant economy, recent turbulence on the bond markets and Friday's survey, which shows British businesses reduce jobs The fastest pace from the financial collapse, except for pandemia.
Reeves, who wants to speed up a number of core investment projects,, according to her recent beating markets and political opponents, decided to go faster and further to grow.
“There is an opinion at the Treasury that it's all fine,” one minister said. “It is considered a permit to make the growth measure more harder.”
One Chancellor's ally said, “It was frustrated at the speed that things happen. She wants to use the power of the treasury to show where we want to go. This is a politically questionable thing. “
For example, Reeves, who has attracted the criticism of the Conservatives this month for a visit to Beijing, promotes that Shein, which is engaged in the production of rapid fashion, be listed on the List in London, despite the fear of standards in its factories in China. It also supports the expansion of Heathrow Airport.
At the beginning of the year, riots on the market led to the claim that Reeves's work was in danger, but its supporters say that she used an episode to respond to “strength and determination”. This month she said she would like to be known as “Iron Chancellor”.
But the conservatives say it's funny. “It is clear that the Labor is out of their depth and do not have ideas to get the economy to grow,” said Andrew Griffith, a shadow business secretary. “Working people pay the price for the Labor War against Business.”
Griffith notes that despite all the speech on Reeves deregulation, he is going to impose a number of new employment laws on the companies estimated Entrepreneurship costs 5 billion pounds.
But Reeves – who talked about the British economy at the World Economic Forum this week – has shown his willingness to use the power of her office to take relevant steps across Whitehall, some of which are applauding in private.
Ministers this week expulsion Marcus Bokkerink as Chairman of the Office for Competition and Market, a monopoly regulator who was criticized for allegedly braking of growth.
According to the Ministry of Finance officials, his departure was a signal for other regulatory bodies that he had to push more to grow. “Sometimes you need to send a message,” one said.
Reeves' focus on the relief of regulators has gained private admiration of the opposition. “We should have done it ourselves,” said one former conservative Minister of Finance.
Yet, while some Tory approved it privately, Reeves's actions on her side disrupted the alley. Former shadow Chancellor John McDonnell accused her of letting the door open to critics to say that the Labor “prevents abuse of corporations and profits”. Another high -ranking left -wing Labor deputy said, “It's desperate.” However, it seems to be suited to making such enemies.
Chancellor also stood on the side of the bank This week in the Supreme Court case, which will decide whether to pay potentially tens of billions of pounds as compensation in case of incorrect sale of motor vehicles. A new tax regime has been released.
Next week, Reeves is also expected to show its support for the expansion of the airport in the southeast, including Heathrow, despite sharp criticism from the Green Lobby and London Mayor Sir Sadiq Khan.
Whitehall's initiates believe that Reeves has revealed this step to bounce off his cabinet colleagues; Starmer himself had previously voted against the third run of Heathrow, while Ed Miliband – who threatened to resign from Gordon Brown's government – downplay any proposal this week. Meanwhile, judicial reviews will be limited.
Given the threat, which is a slow growth for its uncertain fiscal plan, Reeves told the Ministry of Finance to cease to focus on budgets and instead focused on investment support.
Officials work on a number of projects – some of the code names related to fruit – with the aim of obtaining investments in Britain.
One concerns a huge new Universal amusement park They are designed for a place near Bedford, while officials are close to negotiations between society and the Ministry of Finance and say that “are going well”.
The project supporters claim that it could generate up to £ 50 billion over the first 20 years. The Ministry of Finance was asked for financial support, among other things for the modernization of the M1 motorway intersection and the construction of a new railway station.
One official informed about the interviews, called Project Mandarin, said they were almost completed: “It's one of those negotiations you could close if you wanted to.” Another person informed about the interviews added: “It's very close. It's almost there, but not yet. “
Officials said that the support package focused mainly on guaranteeing investment in infrastructure and improvements, which will be essential for the transport of thousands of people passengers to visit 500 acre sites.
Comcast management – whose Universal Destinations & Experiences is behind the scheme – in the past, FT said they wanted to build “one of the largest entertainment parks in the world”.
Universal Destinations & Experience said: “We continue to negotiate with the United Kingdom's government.”
In addition to the amusement park, Reeves also tries to complete negotiations with Astrazenec to revive the stopped vaccine plant in Speke, Merseyside.
The project was suspended after the Ministry of Finance tried to reduce the state support provided to the Vaccination Center of the British Pharmaceutical Society, reducing the obligation of the latest conservative administration from approximately £ 90 million to £ 40 million.
Meanwhile, Reeves is also expected to show her support for the highway and the tunnel across the River Thames in East London worth £ 9 billion to use private finances to pay taxpayers.
There are also indications that the government hopes to avoid any criticism, that it focuses on all its firepower in the southeast of England.
The Ministry of Finance announced the plans for the revision of the “Green Book”, which he uses to assess the value of the proposed investment decisions, which has long been the subject of anger critics who believe that it prefers London and the surrounding region.
She also promised to build an investment project with the help of the investment authority. Reeves is closely monitored by the Northern Mayors, courting the Labor Government when she first entered office.
