UK's new finance minister promises to boost the economy

Following her Labour Party’s victory for power, UK Finance Minister Rachel Reeves pledged on Monday to quickly “fix the foundations” of the country’s economy, which is driven by onshore wind power and home construction.

Reeves made her first significant address as the UK’s first female chancellor in the wake of Prime Minister Keir Starmer’s appointment, during which she declared that there was “no time to waste” on undoing “the legacy of fourteen years of chaos and economic irresponsibility” during the Conservative administration.

With the British economy emerging from recession, the nation’s inflation rate returning to normal, and the Bank of England getting ready to lower interest rates, 45-year-old Reeves assumes office as Chancellor.

center-left Last Thursday’s general election was won by Labour with a sizable majority. Labour had prioritized expanding the UK economy in its program.

“New Treasury analysis I requested over the weekend exposed the opportunities lost” under the Conservatives, Reeves told business leaders in London.

Poor growth, according to her, caused Britain to lose out on £58 billion ($74 billion) in tax revenue last year, which had an effect on public services.

Despite the fact that Britain’s debt has increased recently due to massive governmental spending brought on by the Covid-19 outbreak and rising energy prices, Reeves emphasized that economic growth will require “robust fiscal rules.”

Labour will treble onshore wind energy by 2030, according to the Chancellor, assisting the island nation in its efforts to achieve net zero carbon emissions.

“That means immediately removing the de facto ban on onshore wind in England, in place since 2015,” the government said in a separate statement Monday.

According to Reeves, the planning rule change will speed up the construction of infrastructure across all sectors and enable the government to develop 1.5 million “affordable” homes in collaboration with the private sector.

AFP