‘Not a second to waste’: City of London calls for action to back up Reeves plans

  • January 29, 2025

‘Not a second to waste’: City of London calls for action to back up Reeves plans

‘Not a second to waste’: City of London calls for action to back up Reeves plans
Reeves looked to reset the government’s economic agenda in a speech which committed to the creation of a third runway at Heathrow, a new “growth corridor” between Oxford and Cambridge and a shake-up of regulators. (A traditional dragon statue marks the boundary of the City of London, in the financial district, also known as the Square Mile. (Photo by Leon Neal/Getty Images))

The City of London has warned the government there “isn’t a second to waste” in pushing through its growth plans today after the Chancellor Rachel Reeves set out proposals designed to kickstart investment into the economy.

In a speech in Oxfordshire, Reeves looked to reset the government’s economic agenda in a speech which committed to the creation of a third runway at Heathrow, a new “growth corridor” between Oxford and Cambridge and a shake-up of regulators .

Reeves also pledged to speed up planning reforms and deliver a pipeline of infrastructure projects.

The speech follows a commitment earlier this week to tap into the £160bn surplus sitting in corporate pension schemes, as well as a promise from Keir Starmer to cut through the “thicket of red tape” holding back British companies.

In a statement following the Chancellor’s speech, the City of London corporation, the governing body of the Square Mile, backed the government’s plans but urged ministers to quickly deliver on them.

“Industry now needs speedy delivery and swift implementation to really get growth growing,” the body’s policy chairman, Chris Hayward, said. “There isn’t a second to waste.”

‘Not a second to waste’: City of London calls for action to back up Reeves plans
Rachel Reeves has said that she “won’t apologise for wanting to reform how regulation works in Britain”.

Reeves’ speech today was designed to reboot the government’s growth agenda and reshape its relationship with business after months of economic stagnation since Labour took power.

“We must have action to back up the words”

Firms have sounded the alarm over rising costs this year as the Chancellor’s tax plans come into force. The centrepiece of her October Budget was a £25bn national insurance raid on business which threatens to feed through into price rises this year.

Some of Britain’s biggest business groups welcomed the Chancellor’s commitments today but warned the government must now accelerate its delivery.

Shevaun Haviland, director general of the British Chambers of Commerce, welcomed the plans but said “we must make sure the reality does not fall short of the promise”.

“We must have action to back up the words and make sure this commitment sticks,” she added.

“That means getting on with these projects as soon as possible and delivering them quickly and effectively. Many firms will have the HS2 debacle in the back of their minds, so we need continued engagement from Government on problem-solving and support to keep these projects on track.

“With many businesses struggling with increasing costs, today’s proposals must also be backed up by business rates reform, better export support and an employment rights package that works for firms.”

John Dickie, chief of London business group BusinessLDN, said the plans should now be matched with a spending review “that prioritises funding for measures that will help London and the UK to move out of the economic slow lane”, including a multi-year funding deal for Transport for London and an expanded Affordable Homes Programme.