‘Europe’s Silicon Valley’ at heart of government’s growth plans, Rachel Reeves to announce
Rachel Reeves will unveil Labour’s plans to grow the UK economy on Wednesday, warning it “will not come without a fight”.
The chancellor is expected to announce a raft of measures including developing Oxford and Cambridge – which she says has the “potential to be Europe’s Silicon Valley” – building nine new reservoirs and the redevelopment of Old Trafford.
The speech is considered a key moment for a chancellor who has struggled with sluggish economic headwinds since her first budget last autumn.
Politics latest: Follow the chancellor’s speech on Wednesday morning
Despite intense speculation, the government has not yet announced whether they will back a third runway at Heathrow, or further developments at other airports.
The chancellor has struggled with sluggish economic headwinds since her first budget last autumn. Pic: PA
In a speech on Wednesday, Ms Reeves will confirm:
• Support for the Oxford-Cambridge Growth Corridor – also known as the Oxbridge Arc – that was scrapped by the Conservatives in 2022. The government points to a report claiming the development, including transport, business growth, and housing, could add £78bn to the UK economy by 2035;
• An agreement that allows water companies to spend £7.9bn to build nine new reservoirs, with two planned for Somerset and then one each in Lincolnshire, Hampshire, Cambridgeshire, Oxfordshire, Suffolk, Kent and West Midlands. A new reservoir hasn’t been opened in the UK since 1992;
• The government will back the redevelopment of Manchester United’s Old Trafford stadium and its surrounding area, alongside plans to change the way projects are appraised and evaluated, in order to “support decisions on public investment across the country, including outside London and the southeast”;
• Confirmation of a new approach to the National Wealth Fund and Office for Investment to get regional development happening faster.
Very little of this is new… or growth-friendly
Don’t, whatever you do, call it a “relaunch”.
When the chancellor stands up and delivers her much-anticipated speech on Wednesday – with all sorts of exciting schemes for new infrastructure and growth-friendly reforms – she will cast it as part of the new government’s long-standing economic strategy.
Regardless of whether you believe that this is all business-as-usual, it’s hard to escape the fact that the backdrop to the chancellor’s growth speech is, to say the least, challenging. The economy has flatlined at best (possibly even shrunk) since Labour took power. Business and consumer confidence have dipped. Not all of this is down to the miserable messaging emanating from Downing Street since July, but some of it is.
Still, whether or not this constitutes a change, most businesses would welcome the chancellor’s enthusiasm for business-friendly reforms.
But it’s not everything. What about the fact that the UK has the highest energy costs in the developed world? What about the fact that these costs are likely to be pushed higher by net zero policies (even if they eventually come down)? What about the fact that tax levels are about to hit the highest level in history, or that government debt levels are now rising even faster than previously expected.
A commitment to growth
Ms Reeves will use these plans as demonstrations of the government’s commitment to “growth”.
The chancellor is set to say in her speech: “Low growth is not our destiny. But growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.
“That’s what our Plan for Change is about. That is what drives me as chancellor. And it is what I’m determined to deliver.”
In its election campaign last year, Labour pledged to increase building in the UK – both housing and infrastructure.
These pledges are essential to the government’s plans to grow the economy, which has continued to struggle since Ms Reeves’ budget.
A key date for the chancellor is 26 March, when the Office for Budget Responsibility will provide its latest forecast, an indicator of whether they think the government’s plans will work.
A lack of growth could lead to Ms Reeves having to cut budgets further or raise taxes.
As part of the government’s plans to grow the economy and build, Sir Keir Starmer has vowed to “take on” people who oppose building near where they live, who are known as Nimbys – which stands for Not In My Backyard.
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PM: ‘Growth number one priority’
The Oxbridge arc
The chancellor will also announce that the Environment Agency has dropped its opposition to 4,500 houses around Cambridge after working with the regulator and local authorities.
The prime minister was clear last week that he also wants to see fewer legal challenges to planning applications.
Other developments in that region that are getting government backing include more funding for East-West Rail, with new services between Oxford and Milton Keynes, and upgrades to the roads linking Milton Keynes and Cambridge.
Ms Reeves will also say a new East Coast Mainline Station at Tempsford – between Cambridge and Milton Keynes – will be supported.
Starmer and Reeves will ‘take on’ people who oppose building near where they live. Pic: AP
Read more on growth:
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Sir Patrick Vallance, a science minister who came to prominence during COVID as the government’s chief scientific adviser, will be made the Oxford-Cambridge growth corridor champion.
Ms Reeves is set to say: “Just 66 miles apart, these cities are home to two of the best universities in the world, two of the most intensive innovation clusters in the world, and the area is a hub for globally renowned science and technology firms in life sciences, manufacturing, and AI.
“It has the potential to be Europe’s Silicon Valley. The home of British innovation.”
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She will point out there is no direct commuter link between the two sites and a lack of affordable housing in the area.
The chancellor will say the industrial strategy will look to “take advantage” of the area’s “unique strengths and potential”.
Mel Stride, the shadow chancellor, claimed the “biggest barriers to growth” in the UK are Ms Reeves and Sir Keir, and their “job-destroying budget”.
He branded the ideas “hastily cobbled together”, saying they will not help businesses.
UK
‘I recognise the error and upset caused’ – Gary Lineker releases statement as BBC departure confirmed
Gary Lineker has confirmed reports he is leaving the BBC after this season’s Match Of The Day and will no longer present its World Cup coverage.
It comes after the 64-year-old “apologised unreservedly” for sharing a social media post illustrated with a rat – which has been used to represent Jewish people in antisemitic propaganda, including Nazi Germany.
In a statement on Monday, Lineker said: “Football has been at the heart of my life for as long as I can remember – both on the pitch and in the studio.
Read more: A history of Gary Lineker’s most controversial posts
“I care deeply about the game, and about the work I’ve done with the BBC over many years. As I’ve said, I would never consciously repost anything antisemitic – it goes against everything I stand for.
“However, I recognise the error and upset that I caused, and reiterate how sorry I am. Stepping back now feels like the responsible course of action.”
Lineker has fronted Match Of The Day since 1999. PA
Lineker said he deleted the post when he learned about the rat’s symbolism, adding that he would “never knowingly share anything antisemitic”.
In a video posted to Instagram, the pundit added: “I’ve stood up for minorities and humanitarian issues and against all forms of racism all of my life, including, of course, antisemitism, which I absolutely abhor.
“There’s no place for it and never should be.”
He went on to thank the “brilliant, talented” people he has worked with and described his relationship with the BBC as “long and wonderful”.
He added: “But it’s the right time for the organisation and myself to go our separate ways.”
Lineker’s last appearance on the BBC will be on Sunday 25 May, the final day of the season.
‘A defining voice in football coverage’
Also confirming Lineker’s exit, BBC director general Tim Davie said: “Gary has acknowledged the mistake he made. Accordingly, we have agreed he will step back from further presenting after this season.
“Gary has been a defining voice in football coverage for the BBC for over two decades. His passion and knowledge have shaped our sports journalism and earned him the respect of sports fans across the UK and beyond.
“We want to thank him for the contribution he has made.”
Kelly Cates, Mark Chapman and Gabby Logan will share the role of presenting Match of the Day. Pic BBC/PA
The former England star announced in November he would step down from Match Of The Day this year, but was set to return to front the World Cup in 2026, as well as FA Cup coverage.
The presenter was temporarily suspended from the BBC in March 2023 after an impartiality row over comments he made criticising the then Conservative government’s asylum policy.
He will be replaced on Match Of The Day by Gabby Logan, Kelly Cates and Mark Chapman, who will share the presenting role from the next Premier League season.
Lineker has hosted Match Of The Day since 1999 and has been the BBC’s highest-paid on-air talent for seven consecutive years.
He is also the co-founder of podcast producing company Goalhanger, which makes the popular The Rest Is History series and its spin-offs about politics, football, entertainment and money.
Lineker parting ways with the BBC also includes the licensing deal for Goalhanger podcast titles on BBC Sounds which ends this year, the PA news agency reported.
A “significant amount of personal data” of people who applied to the Legal Aid Agency – including criminal records – was accessed and downloaded by hackers, the Ministry of Justice (MoJ) has said.
The group that carried out the cyber attack says it accessed 2.1 million pieces of data, but the MoJ has not verified that figure, it is understood.
The government became aware of the incident on 23 April, but realised on Friday it was more extensive than first thought.
An MoJ source put the breach down to the “neglect and mismanagement” of the previous government, saying vulnerabilities in the Legal Aid Agency systems have been known for many years.
The Legal Aid Agency (LAA), is an executive agency, sponsored by the MoJ, which is responsible for administering legal aid funding – around £2.3bn in 2023/24.
The data accessed affected those who applied for legal aid in the last 15 years, and may include contact details and addresses of legal aid applicants, their dates of birth, national insurance numbers, criminal history, employment status and financial data such as contribution amounts, debts and payments.
The MoJ has urged anyone who applied for legal aid since 2010 to update any passwords that could have been exposed, and be alert to unknown messages and phone calls.
The organisation’s digital services, which are used by legal aid providers to log their work and get paid, have been taken offline.
‘We needed to take radical action’
Legal Aid Agency chief executive Jane Harbottle has apologised for the breach and acknowledged the news would be “shocking and upsetting”.
“Since the discovery of the attack, my team has been working around the clock with the National Cyber Security Centre to bolster the security of our systems so we can safely continue the vital work of the agency,” she said.
“However, it has become clear that, to safeguard the service and its users, we needed to take radical action. That is why we’ve taken the decision to take the online service down,” she said.
Ms Harbottle said contingency plans are in place for those who need legal support and advice.
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Retail disruption to ‘last months’
The Law Society, an organisation representing solicitors across the UK, blamed the attack on Legal Aid’s “antiquated IT system”.
“The incident once again demonstrates the need for sustained investment to bring the LAA’s antiquated IT system up to date and ensure the public have continued trust in the justice system,” said a Law Society spokesperson.
The Ministry of Justice (MoJ) said it is working with the National Crime Agency and National Cyber Security Centre to investigate the data breach.
The National Crime Agency said it was aware of the incident and was working closely with the MoJ to “better understand the incident and support the department”.
It comes after retailers Co-op, Harrods and Marks & Spencer were hit by cyber attacks, although there is no suggestion that they are connected to the incident at the LAA.
The Who’s drummer Zak Starkey has been sacked by the band, marking the second time he has left in the past month.
The band’s guitarist Pete Townshend made a statement on Instagram on Sunday, saying: “After many years of great work on drums from Zak the time has come for a change.
“A poignant time. Zak has lots of new projects in hand and I wish him the best.”
The announcement comes weeks before the iconic British rock group’s farewell tour.
In response, Starkey, who had been a band member since 1996, said in an Instagram post he would “never have quit” and had experienced “weeks of mayhem”.
“I was fired two weeks after reinstatement and asked to make a statement saying I had quit to follow my other musical endeavours,” he wrote.
“Not true. I love The Who and would never have quit and let down so many amazing people who stood up for me through all this madness.”
Reports surfaced in April that the band had taken the “collective decision” to sack Starkey after a row over their Teenage Cancer Trust shows in March.
Roger Daltrey and Starkey on stage at the Royal Albert Hall in March. Pic: PA
A review of one gig, published in the Metro, suggested frontman Roger Daltrey, who launched the annual gig series for the charity in 2000, had been “frustrated” with the drumming during some tracks.
According to the review, Daltrey at one point paused a song and said: “To sing that song I do need to hear the key, and I can’t. All I’ve got is drums going boom, boom, boom. I can’t sing to that. I’m sorry guys.”
At the time, the 59-year-old drummer said he was “surprised and saddened” by news of his sacking.
Three days after the reports came out, a statement on the band’s official social media pages titled “News Flash! Who Backs Zak,” said he was “not being asked to step down from The Who”.
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In it, Townshend said: “There have been some communication issues, personal and private on all sides, that needed to be dealt with, and these have been aired happily.
“Roger and I would like Zak to tighten up his latest evolved drumming style to accommodate our non-orchestral line-up and he has readily agreed.”
Later in the lengthy statement, he said regarding the gigs: “Zak made a few mistakes and he has apologised.”
At that point, Starkey – who is the son of The Beatles drummer Ringo Starr – reposted Townshend’s statement, with the message: “V grateful to be a part of the Who family Thanks Roger and Pete xx”.
Starkey also drums for supergroup Mantra Of The Cosmos – along with fellow musicians Shaun Ryder and Bez from Happy Mondays, and Andy Bell of Ride and Oasis – and has previously played with Oasis, Lightning Seeds and Johnny Marr.
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