Rachel Reeves set out a series of major announcements on infrastructure projects, promising to go “further and faster” than previous governments
Chancellor Rachel Reeves gave a speech in Oxfordshire, outlining plans to expand the UK’s infrastructure and boost economic growth.
Through a series of construction projects that she promised “would get Britain building”, a promise that formed a pillar of their election campaign. The chancellor stated that Labour had done “more to unblock the planning system in the last 72 hours than the previous government did in 14 years”.
Commenting on the Chancellor’s growth speech Phil Pluck, CEO of the Cold Chain Federation, said “The Cold Chain is not just an industry; it’s the backbone of our economy. Contributing over £14 billion to our GDP annually, it underpins our food security, healthcare, and economic prosperity. We support the details here, but they are largely repetitions of what has already been said.”
BBC News reported that government guidance on building major projects will be reviewed in order to support investments across the UK, but particularly in the North, according to Chancellor Reeves.
“This means that investment in all regions is given a fair hearing by the Treasury that I lead,” she said, working alongside other major changes that will be set out in upcoming the Planning and Infrastructure Bill.
Priorities for the Bill, confirmed last week, include rapid streamlining of the planning application process, making the consultation process “far less burdensome” and fundamentally reforming the UK Government’s approach to environmental regulation.
Developing infrastructure
In her speech, the Chancellor said: “We will work with the private sector to deliver the infrastructure that our country desperately needs”.
One of the projects announced was the development of a £9 billion tunnel under the Thames River, which the BBC reported “will be one of the most expensive infrastructure projects in British history”, to improve connectivity and make the transport of goods from Europe more efficient.
In response, Mr Pluck said “We welcome the announcement of progress on the proposed Lower Thames Crossing and that planning reforms may well accelerate its development. This is a vital development that will aid food and pharma transport across the whole country network.
Rebuilding relations with Europe
Speaking on the need to repair the UK’s relationship with Europe, which has significantly affected operations across the cooling sector, the chancellor said “Acting in our national interest also means resetting our relationship with the EU – our nearest and our largest trading partner – to drive growth and support business”, adding “We are pragmatic about the challenges that we have inherited from the last government’s failed Brexit deal”.
Commenting on this, the CCF’s Mr Pluck said: I welcome the confirmation that the government intends to reset the relationship with the EU. In doing so, it must work closely with the cold chain to fully understand the impact on food and medicine supply and on food inflation. The EU is our most important trading partner and to find common ground on food and pharma safety, import/export standards and inspection guidelines is vital”.
Mr Pluck also highlighted that while the Chancellor stated that she will make it easier for companies to invest, she failed to acknowledge that increases in employment costs that have already been imposed “have resulted in the exact opposite”.
He continued, “The cold chain sector is looking at over £620 million in extra employment costs and this is already having an impact on future recruitment decisions and investment plans”
Concluding his comments, Mr Pluck added “Most of today’s announcements are welcome. But now is the time to turn them into actions.”
