After the recent turmoil, Reeves is going ‘further and faster’ for development

Dismal UK economic data this month gave Chancellor Rachel Reeves “license” to pursue a more aggressive growth agenda, senior government officials said, stoking labor sentiment and putting her at war with regulators.

The chancellor will deliver a “growth” speech next week against a backdrop of a frozen economy, recent turmoil in bond markets and a survey on Friday that showed UK businesses are cutting jobs at the fastest pace since the financial collapse, barring the pandemic.

Reeves, who wants to accelerate a number of major investment projects, has decided to move “fast and forward” to pursue growth after recent battering by markets and political opponents, colleagues have said.

“There is an attitude in the Treasury that this is all good,” said one minister. “It’s seen as permission to go hard on progress.”

A female partner of the chancellor said: “She is frustrated at the speed with which things have turned out. She wants to use the power of the Treasury to show us where we want to go next. This is a political issue.

For example, Reeves, who drew conservative criticism for visiting Beijing this month, is pushing fast-fashion company Sheen to register in London despite concerns about standards at its factories in China. She is also supporting the expansion of Heathrow Airport.

While market turmoil earlier in the year led to accusations that Reeves’ career was on the line, her fans say she used her room to respond with “strength and determination.” She said she would be happy to be recognized this month. “Iron Chancellor”.

But conservatives say that’s ridiculous. Shadow trade secretary Andrew Griffiths said: “It is clear that thieves are out of their depth and out of their minds to keep the economy growing.” “Working people are paying the price for the war on business.”

For all of Reeves’ control talk, Griffith says she is going to impose new employment laws on companies that will cost the government an estimated £5 billion.

But Reeves – who is speaking on Britain’s economy at the World Economic Forum this week – has shown in recent days her willingness to use the power of her office to take decisive action across Whitehall, some of which are privately admired by the Tories.

This week, ministers removed Markus Bockkern, the monopoly watchdog criticized for being progressive, as chairman of the Competition and Markets Authority.

His departure was a signal to other regulators that they need to push harder on growth, Treasury officials said. “Sometimes a message has to be sent,” said one.

Reeves’ focus on instigating regulators has earned him the personal admiration of opponents. “We had to do it ourselves,” said one former Tory Treasury minister.

But while some Tories have privately approved, Reeves’ actions have left some in the crosshairs. She accused Labor of leaving the door open to critics who said Labor had “defended corporate tyranny and profiteers”. Another senior left-wing Labor MP said it was “desperate”. But she seems comfortable making enemies like this.

The chancellor will side with the banks in a Supreme Court case this week that will see them pay tens of billions of pounds in motor finance mis-selling. A new non-dom tax system was introduced.

Next week, Reeves is also expected to back airport expansion in the South East, including Heathrow, despite heavy criticism from the Green lobby and London Mayor Sir Sadiq Khan.

Whitehall insiders believe Reeves left the move to hit her cabinet colleagues. Starmer himself has previously voted against a third runway at Heathrow, while Ed Miliband – who threatened to resign from Gordon Brown’s government over the issue – this week shot down any suggestion he would stop it. Meanwhile, judicial reviews of controversial infrastructure projects are suspended.

Given the concerns over her lackluster fiscal plan, Reeves told the Treasury to stop focusing on the budget and instead focus on boosting investment.

The authorities are working on various projects to invest in Britain – some of which have code names related to fruit -.

One relates to a massive new Universal theme park planned for a site near Bedford, which officials close to talks between the company and Treasury say are “going well.”

Proponents of the project say it could bring economic benefits of up to £50 billion over the first 20 years. The Treasury has been asked to provide funding, including to improve the M1 motorway junction and build a new station.

An official briefed on the talks, dubbed Project Mandarin, said they were close to completion: “It’s one of those negotiations where you can conclude if you want.” “It’s very close,” said another person summarizing the talks. Almost here but not yet.

Officials said the support package will mainly focus on ensuring infrastructure investments and improvements, which will be critical to transporting thousands of people traveling to visit the 500-acre site.

Executives at Comcast – Universal Destinations and Experiences, which is behind the plan – have previously told the FT they want to build “one of the biggest theme parks in the world”.

Universal Destinations and Experiences said: “We continue to have productive discussions with the UK government.”

Alongside the park’s theme park, Reeves is also trying to finalize negotiations with AstraZeneca to revive a defunct vaccine manufacturing site in Speke, Merseyside.

The project is on hold after the Treasury slashed the amount of government support it will give to the British pharmaceutical company’s vaccine centre, cutting the pledge from £90mn to £40mn under the previous Conservative administration.

Meanwhile, Reeves is expected to give her support to a £9bn highway across the River Thames in east London, which will use private finance to cover the cost to taxpayers.

There are also signs that the government hopes to deflect any criticism that it is focusing all its firepower on the southeast of England.

The Treasury has announced plans to review the “green book” it uses to assess the value of proposed investment decisions.

He promised to build a pipeline of investment projects outside the Southeast with the help of the Investment Office. Reeves is being watched closely by northern mayors, who were put on trial when the Labor government took office.