IEA - Chancellor’s rhetoric on growth must become reality

29 Jan 2025 02:11 PM

Tom Clougherty, Executive Director of the Institute of Economic Affairs Responds to the Chancellor’s speech on economic growth

“The Chancellor is saying all the right things on growth and should be applauded for many of the decisions she has taken today. Restoring Britain’s economic dynamism simply has to be the Government’s overriding objective – without that, no other meaningful agenda is possible

“The challenge now is to make sure that rhetoric becomes reality. Can the government face down opposition to the developments that it now wants to proceed? Heathrow’s third runway will be the acid test of how heartfelt the government’s growth commitment is. After all, we have been here – and been disappointed – before.

“The Government also needs to ensure that pro-growth action on specific projects is following by fundamental, systemic reforms – which mean that in future, market-led development does not depend on intervention from Downing Street for its viability. We need genuine regulatory liberalisation if this pro-growth pivot is going to be sustainable.

“Crucially, how will prioritising growth sit alongside the Government’s plans on employment law and Net Zero? As things stand, policy commitments in those areas clearly militate against stronger economic growth. If the Government is willing to rethink its approach there, we will know that they are serious about putting growth first.”

IEA spokespeople are available for live and pre-recorded broadcast

Notes to Editors

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.

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