LONDON, Jan 29 (Reuters) - British finance minister Rachel Reeves unveiled plans to boost the country's sluggish economy on Wednesday, expanding recent commitments to reform investment and planning regulations by endorsing airport expansion at Heathrow.
Key government initiatives announced since taking office last July to spur growth include:
- Limiting the number of challenges opponents can lodge against major infrastructure projects to expedite development. - Streamlining the legal process to allow only one challenge for weak cases, in place of the current three. - Discontinuing the initial permission stage termed "paper permission."
Reeves expressed support for constructing a third runway at London's Heathrow Airport, aiming for approval by the end of the current parliamentary term in 2029, with operational capability projected for 2035.
Additionally, the government plans to foster the "interface" connecting Oxford and Cambridge by facilitating housing, laboratories, and transportation development, ultimately boosting the economy by an estimated £78 billion by 2035.
Legislative adjustments are anticipated to mobilize over £100 billion in corporate pension surpluses, which will be invested in various sectors to stimulate economic growth.
Reeves is advocating for the amalgamation of numerous pension schemes to enhance efficiency and support ambitious endeavors.
Efforts are underway to drive regional economic advancement by concentrating on sectors like technology, manufacturing, and renewable energy, with the implementation of mandatory housing targets to address housing affordability issues.
The government urges regulatory bodies to remove barriers hindering economic progress, fostering an environment that encourages investment and innovation while working towards constructing 1.5 million new homes in the next five years.
Reeves recently contested a decision by the competition watchdog chair, discordant over strategies to accelerate the nation's economy.
The Bank of England deferred the implementation of stricter bank capital regulations to January 2027 for clarity on the U.S. stance under President Donald Trump.
Regulatory amendments seek to facilitate private firm share trading, revitalize capital markets, and support new IPOs to galvanize economic growth and lending to small and medium-sized enterprises.
In 2023, the Conservative government removed a long-standing cap on banker bonuses.
($1 = 0.8055 pounds)