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Politics
Chancellor’s enthusiasm ‘has never burned brighter’ – but will her plans finally boost growth?
The chancellor spent most of her first six months issuing dire warnings about the calamitous state of the public finances she inherited.
But now, in a dramatic change of tone, Rachel Reeves is celebrating the UK’s economic possibilities.
Inspired by Donald Trump’s economic boosterism, and despite the UK’s flatlining growth figures, she told Trevor Phillips she’s spent the past few days in Davos “shouting on the world stage about everything our great country has to offer”.
“My enthusiasm and excitement… has never burned brighter.”
But this optimistic message isn’t just part of a new international sales pitch, a riposte to critics who believe the chancellor damaged investor confidence in the UK with her gloomy previous prognosis.
Instead, it’s part of the government’s drive to reconnect with businesses bruised by her tax-raising budget – an attempt to demonstrate that economic growth genuinely is its number one priority – at the expense, perhaps, of all else.
Of course, the chancellor argues that growth is needed to deliver the level of public services voters expect from a Labour government – without rapid improvements to the public finances, departments are likely to face austerity-level cuts.
Now we’re finally getting more detail on the practical strategy to deliver the growth that has proved so elusive for successive governments in recent years – but many of the measures involved are highly controversial.
Read more: Reeves to seek billions from corporate pension surpluses
From reducing planning hurdles to demanding regulators strip out red tape, in some ways, the Labour government is now seeking to enact many of the policies promised by Liz Truss.
Asked about the comparison by Trevor Phillips this morning, Ms Reeves didn’t deny the similarity, arguing only that “we’re doing practical things to get that growth, not just talking about it”.
On Wednesday in a big speech on growth, we’ll hear more about these practical steps.
The biggest expected announcement is about the long-awaited expansion of Heathrow Airport, as well as plans for Gatwick and Luton.
File pic: AP
As a symbol of going for growth above all else, it couldn’t get much bigger, but the reason the project has failed to get off the ground is that so many people object to it so passionately – for a wide range of reasons, from concern over emissions and our net zero commitments to noise pollution.
Ms Reeves told Trevor Philips today the decision would be taken with “collective ministerial responsibility”.
That may be easier said than done.
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Previously, many members of the cabinet, including Sir Keir Starmer, Environment Secretary Steve Reed and Energy Secretary Ed Miliband voted against expanding the west London airport.
Supporting the plans will surely be uncomfortable for many on the Labour benches, especially with the Mayor of London so implacably opposed.
Asked this week if he’d consider resigning over it, though, Mr Miliband responded: “Don’t be ridiculous, no.”
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Reeves: ‘Happy to look at’ joining pan-EU trading group.
Perhaps the clearest indication of the government’s economic focus comes with the chancellor’s willingness to discuss the possibility of joining a European customs grouping, the Pan Euro Mediterranean Convention.
“We are absolutely happy to look at these proposals,” she told Trevor Phillips – quite a contrast to the non-committal answers given by other ministers earlier this week.
The Conservatives are predictably up in arms, with Andrew Griffiths, the shadow business secretary, quick to ring the Brexit alarm bell.
“We must avoid undoing Brexit by the back door by aligning with the EU’s low growth model,” he said.
While the prime minister has long promised a “reset” in relations with the EU, any hint of backpedalling on Brexit is so politically sensitive that discussion about moving towards a closer economic relationship is always muted.
The fact Ms Reeves is even looking into this is perhaps, more than anything, a sign of their desire to show they’re willing to consider all options.
But as with the airports, it’s likely to be a very long time before any of these pro-growth intentions have a practical impact on GDP.
Kemi Badenoch has defended blaming “peasants” from “sub-communities” in foreign countries for the grooming gangs crisis.
Speaking to Sky News’ Sunday Morning with Trevor Phillips, she insisted she would not be “shy” when talking about the scandal, which saw a string of child sexual exploitation convictions of men mostly from Pakistani backgrounds.
Ms Badenoch told GB News last week there is a “systematic pattern of behaviour not even just from one country, but from sub-communities”, adding: “You know, people who are very, very poor, sort of peasant background.”
The Conservative leader faced criticism for her words, with Downing Street saying it was not language Sir Keir Starmer would use.
But Ms Badenoch doubled down on her words, telling Trevor Phillips: “The point I was making there was about a specific report on that community of people who are predominant in the rape gangs.
“They did come from a particular place where they were mostly peasant farmers, they were insular, even from the rest of Pakistan, they’re not like the people in Lahore.
“And that’s one of the things that I’m trying to fix. I hear a lot of people talk about Asian grooming gangs, about Pakistani grooming gangs, a lot of people are being blamed, a lot of innocent people who happen to share characteristics are being blamed, so let’s be specific.”
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‘Our country is not a hotel’
Sky News’ analysis of the data on the victims and perpetrators of child sexual abuse shows in terms of group-based offences, 85% of suspects are white, while 7% are Asian and 5% are black.
The ethnicity of perpetrators and victims was only recorded in 29% of cases so it is difficult to be too conclusive about over and under-representation. But there’s enough evidence to rule out the idea that this is a problem unique to any one ethnic group.
Sir Keir and Ms Badenoch have clashed repeatedly over her calls for a national inquiry, with the prime minister saying one has already happened, referencing Professor Alexis Jay’s inquiry that took seven years and was published in 2022.
Read more:
Grooming gangs scandal – what happened?
Badenoch would back Heathrow third runway
Ms Badenoch also told Trevor Phillips “evil habits” have been propagated from people who have come to the UK from a “particular region and sub-community in Pakistan”.
“The [immigration] numbers we have seen over the last few decades mean that we are getting people having separate and insular communities.
“The most extreme example of this is what we saw with the rape gangs where people who’ve been coming to this country, from the 60s, from a particular region and sub-community in Pakistan, get here, stay insular, not interested in integration.
“And then you start seeing very very toxic, I would say evil habits propagating and no one doing anything about it because they’re separate.
“We have to make sure that we have a dominant culture in our country, and the people who move here want to help make the UK a better place.”
“Our country’s not a hotel, it’s not a dormitory, this is our home,” she added.
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