Chancellor's growth push runs into heavy turbulence

Optimistic economic growth vision suffers a short-term hit

- DAVID MADDOX

Rachel Reeves has given her backing to the long-awaited expansion of Heathrow airport as she set out her “optimistic” vision for Britain’s economy with a plan for growth based on building “faster and better”.

However, the chancellor’s upbeat message was almost immediately hit by short-term economic woes, with Tesco cutting 400 jobs and Lloyds announcing the closure of 136 branches. This followed Sainsbury cutting 3,000 jobs last week.

Meanwhile, Durham University has slashed 200 jobs and Cardiff University cut 400 posts in the past 72 hours. The job losses were linked to Ms Reeves’s “anti-growth” hike in national insurance contributions and plans to roll out workers’ rights.

To add to her woes, Bank of England governor Andrew Bailey told the Commons Treasury committee that “very big decisions” will be needed to stop Britain’s public debt pile from spiralling higher Faced with the continued challenges, a beleaguered Ms Reeves told ITV’s Robert Peston: “Look, I’m trying to turn around this economy. It’s not an easy job.”

Speaking immediately after her speech in Oxfordshire, she insisted the job gains from measures she has announced will outweigh job losses.

“Today I announced the third runway at Heathrow potentially creating 100,000 jobs and investment in East Midlands airport, with 2,000 jobs. Investment in an investment zone in Wrexham and Flintshire, 6,000 jobs. So, we can trade numbers. The IMF upgraded the forecast for growth for this year for the UK. Only the UK and the US are in that position.”

However, Tory shadow business secretary Andrew Griffith posted on X (formerly Twitter): “Yesterday, Lloyd’s [sic] CEO sat down to breakfast with the prime minister and chancellor; 24 hours later Lloyd’s [sic] announce likely job losses and the closure of almost 140 branches. As votes of confidence go, might need a bit of work.”