Labor wants to boost the economy - "Facing a difficult legacy"
The British Labour government is pushing hard on economic issues. Already a few days after taking office, Chancellor Reeves claimed to have removed initial obstacles. So, wind farms and the construction of 1.5 million new homes in the coming years is expected.
The new British government is putting the pedal to the metal in its plans to unleash growth. "We have no time to waste," said Chancellor Rachel Reeves. In the context of a new "national mission" to promote economic growth, efforts have already begun to resolve blockages in infrastructure projects and private investments.
"We know we can't turn things around overnight. We're facing a heavy legacy," said Reeves, who previously worked as an economist at the Bank of England. But we're taking the first steps now. Labour intends to address the long-standing housing shortage. Reeves announced fundamental reforms in the planning process. The complicated planning procedures and extensive opportunities for objections from neighbors are, according to Labour, the main reason for the slow progress in building residential properties. The British government hopes for a construction boom to also provide a push for the country's economic growth. According to Reeves, 1.5 million new residential properties are expected to be built in the next five years.
Wind farm brakes lifted
Planning permissions for infrastructure projects and new onshore wind farms are expected to be accelerated. Due to previous regulations, the construction of new onshore wind turbines on land had been almost impossible, as a single objection could halt such projects. These regulations were therefore seen as a de facto ban on onshore wind farms in the largest British region. Introduced was the regulation the conservative government in 2015 under then-Prime Minister David Cameron.
"This ban has undermined our energy security, increased the bills for people - especially those with lower incomes - and hindered us in the fight against climate change," said Reeves. The decision was welcomed by representatives of the energy industry as well as climate protection organizations. However, it is expected that the construction of new onshore wind farms will still take some time before they can be built.
Reeves also addressed investors in her speech who had turned their backs on Britain following the Brexit vote of 2016, which caused years of political turbulence. "Britain is a place where you can do business in an uncertain world," said the Finance Minister.
The new government led by Prime Minister Keir Starmer faces the task of boosting growth to finance higher public spending. However, they have promised in the election campaign not to raise the most important taxes for the population. Labour's room for maneuver is limited, according to observers. The standard of living in the country has stagnated since 2010 and the national debt is relatively high with almost 100 percent of economic output. The economy is expected to grow by less than 1 percent in 2024.
The Labour Party aims to stimulate the economy of Great Britain with targeted measures. As part of this, an economic stimulus package has been proposed to tackle the housing shortage and accelerate the construction of wind farms, including onshore wind farms previously obstructed by regulations.
With the removal of obstacles and reforms in the planning process, the British government expects a construction boom, contributing to economic growth and potentially surpassing the goal of 1.5 million new homes in the next five years.
