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Rachel Reeves will call skeptical MPs on Monday to back her plans to boost Britain’s economy, including a highly controversial proposal to expand Heathrow airport.
The Chancellor is facing criticism from some in her party for allegedly pandering to business over consumers and supporting a third runway at Britain’s busiest airport, amid fears they could hit the government’s environmental targets.
But Reeves Will seek to confront her critics when she meets the Parliamentary Labor Party on Monday, telling MPs that without growth she cannot fund improvements to public services she wants.
Reeves, who met investors at the World Economic Forum in Davos this week, will also spend the next two days meeting chief executives to convince them she has a credible growth strategy.
Many business leaders fear that their policies have contributed to a stagnant economy.
On Sunday, Reeves actually confirmed she would support the construction of a third runway at Heathrow when she delivered a “growth” speech on Wednesday and insisted the aviation industry is becoming greener.
Asked about claims by London Mayor Sir Sadiq Khan that the policy would achieve clean air and net zero targets, Reeves said: “A lot has changed in terms of aviation.”
She told the BBC’s Laura Kuenssberg that more sustainable aviation resources were available and that “a third runway will mean flights can land at Heathrow instead of circling London”.
Reeves said she has already agreed expansions at London City and Stansted airports and is also expected on Wednesday to approve expansions at Gatwick and Luton, representing a huge expansion of London airport capacity.
A third runway was first proposed by the last Labor government in 2003 on economic grounds, but subsequent Conservative administrations tried and failed to advance the system.
Khan and environmental groups have long opposed Britain’s binding target for net carbon emissions. But this week Energy Secretary Ed Miliband, who is stepping down during Gordon Brown’s government over the issue, said He wouldn’t leave his role When the third runway is approved.
Paul McGuinness, Chair of the No Third Runway Coalition, said: “The expansions at other London airports undermine the case for Heathrow’s uniquely complicated and costly third runway, making it an even riskier, if not volatile, proposal. “
Left Labor MPs also fear Reeves is tilting the regulatory landscape in favor of big business and away from consumers, with one saying: “She’s throwing herself at big business.”
But the chancellor insisted on Sunday that without radical change Britain would have inadequate growth and that the government would not meet its target of 1.5 million new homes in this parliament.
“Too often the answer to the new development was “no”. But that is the attitude that has stunted economic growth and made workers worse off,” she said. “I don’t think low growth is our fate.”
Reeves announced new plans to speed up the construction of new homes near commuter train stations as part of reforms under a new planning and infrastructure bill.
The Treasury said the new rules would ensure the default answer is “yes” when developers submit an application for acceptable types of systems in key areas such as commuter transport -.
Reeves also supported a regeneration project at Old Trafford in Manchester, championed by Greater Manchester Mayor Andy Burnham.
The Treasury said it would “see new residential, commercial and public spaces as a shining example of the bold pro-development model that will drive growth across the region”.
Manchester United have plans Rebuilding or redeveloping Old Trafford, which city leaders claim could drive one of the “biggest urban regeneration projects in Britain of all time”.
The Premier League club will decide by the end of this season whether to build a new 100,000 capacity property and create the largest stadium in the country or expand and expand the existing ones.
Burnham called the proposal “the biggest opportunity to regenerate the city” since the 2012 London Olympics.
