Reeves backs commuter towns to kickstart growth

Rachel Reeves has bet her economic credentials on a commuter town boom in a hope it will spark growth in the UK.

- MILLIE COOKE & DAVID MADDOX

The chancellor is set to make a major announcement on planning reform amid questions about her own future in the Treasury and economic indicators putting Britain on the brink of a crisis.

Ahead of a speech later this week, the chancellor promised to “take an axe to red tape that slows down approval of infrastructure projects” – plans which Angela Rayner said would “make home ownership dream a reality for millions”.

The chancellor revealed new plans for more houses near commuter train stations, in what the government said was “bold reform of the planning system to deliver on the Plan for Change for working people”.

She also announced that environmental assessments for building homes and infrastructure will be replaced with a new, simpler system.

The latest attempt to boost growth comes as recent rises in borrowing costs threaten her economic plans, while leaders in the business sector continue to voice concerns over upcoming tax rises in April from her autumn Budget.

While the prime minister insists he will keep Ms Reeves in post, with the economy on the brink of a recession and business confidence in the government at its worst point since the Covid pandemic, there have been growing questions over her position.

The chancellor is expected to use a speech on growth this week to support the proposed third runway at Heathrow airport and to endorse expansion at Gatwick and Luton.