The Prime Minister said the Government’s ‘growth mission’ was now the driving force behind policy decisions as he told business chiefs in the City of London that had been made clear to ‘each of our Cabinet colleagues’
Sir Keir Starmer, alongside Rachel Reeves, has instructed Cabinet members to scrap any policies that may hinder economic growth initiatives.
The Prime Minister highlighted that the Government’s commitment to a “growth mission” is now at the heart of policymaking, as he addressed financial leaders in London, emphasizing that this directive had been made apparent to “each of our Cabinet colleagues”
This Wednesday, the Chancellor is set to unveil an ambitious growth-focused speech, which is anticipated to back the expansion of Heathrow Airport—a move previously opposed by certain Cabinet ministers, including Energy Secretary Ed Miliband.
Detailing the new strategy to business figures, Sir Keir explained: “When you’re answering the question, ‘should we do X, or should we do Y’, that is guided by the mission. Should we do X? If it’s good for growth, good for wealth creation, the answer is ‘yes’, if it’s not then the answer is ‘no’.”
Sir Keir proclaimed that this approach instills priority and direction in government activities. He went on to assert that growth has been firmly integrated into all Cabinet decisions. “What Rachel and I have done is to make it clear to each of our Cabinet colleagues that in each of their briefs, growth is the number one mission.”
Under the new measures, ministers will be required to demonstrate the potential of new policies to stimulate growth before receiving backing from fellow Cabinet members, effectively overhauling the usual procedure for obtaining “collective agreement” on significant policy alterations. The Prime Minister has tasked Cabinet Secretary Sir Chris Wormald with the implementation of these changes.
Under new guidelines, the economic impacts of proposals will now be scrutinized with the same level of detail as new public spending. However, Downing Street has conceded that this heightened scrutiny won’t necessarily halt policies that could curtail growth.
The Prime Minister’s spokesperson made it clear: “The decision-making will continue to be for the Cabinet; we are not going to pre-empt Government decision-making.
“The point is the growth impact, the growth credentials, must be presented – much like public spending implications must be presented – such that in reaching collective agreement it is very clear what the impact of those decisions will be on growth.”
Addressing a gathering of business leaders in London, the Chancellor emphasised her mandate to tout the UK as a prime location for business investment. Marking a shift in tone away from previous months spent spotlighting the challenging legacy left by the Conservatives, Ms Reeves proudly stated: “It’s the role of government to shout about all the amazing things that we are doing as a country, all the huge opportunities that we have.”
During a subsequent dialogue with journalists following his meeting with corporate bosses at Bloomberg’s HQ in the City of London, Sir Keir refrained from confirming any announcements regarding airport capacity. When pressed on whether he was prioritizing economic growth over environmental commitments, he responded: “I’m not going to speculate about Heathrow and any decision there. What I will say is that growth is the number one priority, wealth creation, making sure that people are better off. Of course, we also have climate commitments, but growth is really important too.”
The top-level meeting brought together the Prime Minister and Chancellor with heads from leading companies such as Tesco, BT, Unilever, and Lloyds Bank in an effort to champion the private sector and woo further investment into UK shores.
Debbie Crosbie, Nationwide’s chief executive and one of the attendees, voiced her support: “The Government’s focus on economic growth is vital to improve living standards, support public services, and increase UK competitiveness.
“The drive to remove the regulatory barriers that limit growth are very welcome, particularly when they increase access to the housing market. Today’s meeting was another good example of the positive engagement between government and industry.”
In a sweeping policy shift aimed at bolstering British businesses and infrastructure, the Government has announced significant modifications to the pension fund regulations. The new directive allows defined benefit pension schemes that are running a surplus to invest more freely into their associated employers.
Currently, about 75% of these schemes are in surplus, presenting an opportunity for the Government to unleash up to £160bn for potential investment.
