CHANCELLOR Rachel Reeves is prepared for a head-on clash with Cabinet colleagues, declaring economic growth must trump Net Zero ambitions.
Ms Reeves insisted a thriving economy must take precedence over hitting green targets ahead of a pending split over Heathrow expansion plans.
Chancellor Rachel Reeves is prepared for a head-on clash with Cabinet colleagues over Net Zero
Kirsty O’Connor / TreasuryReeves at the WEF summit in Davos, Swizerland[/caption]
And she appeared ready to open a rift with Energy Secretary Ed Miliband, who said this week that the transition to Net Zero was “unstoppable” but not happening “fast enough”.
Ms Reeves, who is in Davos, Switzerland, to court business leaders, appeared to be backed by Sir Keir Starmer who said he was “committed to growth” but refused to comment on plans for a third runway at Heathrow.
She said: “This was the last government’s problem.
“There was always somebody that said, ‘Oh, yes, of course, we want to grow the economy but we don’t like that investment.’
“Or, ‘We don’t like that wind farm, we don’t like those pylons, we don’t like that airport’.”
Speaking at a Bloomberg event, she added: “The answer can’t always be no.
“When we say growth is the number one mission of this Government we mean it — and that means it trumps other things.”
She is expected to give her backing to Heathrow expansion and more capacity at Gatwick and Luton in a speech next week.
And PM Sir Keir Starmer looks set to U-turn on the third runway, telling MPs yesterday he was “committed to growth”.
Sir Keir and Cabinet Ministers such as Miliband and Environment Secretary Steve Reed have previously voted against expansion of the West London airport.
But London Mayor Sir Sadiq Khan has threatened to lodge a legal challenge against the expansion, while Manchester Mayor Andy Burnham said the move would trap investment in southern England.
Meanwhile, Ms Reeves is under renewed pressure to tighten the purse strings after public borrowing hit £18billion last month — the highest December figure for four years.
Alex Kerr, expert at Capital Economics, said: “The Chancellor may need to raise taxes or cut spending in the next fiscal statement on March 26.”
Farm tax ‘food risk’
By Martina Bet
LABOUR’S tax grab on farms will put Britain’s food security at risk, Tesco warned yesterday.
The supermarket giant called for a pause on levying inheritance tax on estates worth over £1million.
Its commercial boss Ashwin Prasad said: “This is not just a debate about policies — the UK’s future food security is at stake.”
Lidl, Aldi and the Co-op also joined a growing revolt against the autumn Budget changes.
The Office for Budget Responsibility said the move would only raise £500million by 2030, and older farmers will be hit hardest.
EU threat to US deal
By Martina Bet
LABOUR’S obsession with the EU could scupper a blockbuster trade deal with the US.
Business Secretary Jonathan Reynolds sparked alarm yesterday by suggesting the UK pursue “ambitious” talks with Brussels to align regulations more closely.
Brexit adviser Shanker Singham, CEO of trade consultancy Competere, said: “They need to ask themselves what do they gain, and what do they lose?”
Shadow Foreign Secretary Priti Patel blasted the “sinister plan” to tie us to “Europe’s slow growth”.
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