Chancellor Rachel Reeves addressed the nation on Labour’s housebuilding initiatives, targeting enhanced living standards and economic growth.
- Labour will reinstate local housebuilding targets and ease planning restrictions on certain green belt areas.
- A new National Planning Policy Framework will enable onshore wind turbines and is set to be released before the August recess.
- Reeves criticised the previous government’s economic record, highlighting missed opportunities for growth.
- Labour aims to build 1.5 million homes during this parliamentary term to tackle the housing crisis.
In her inaugural speech at the Treasury, Chancellor Rachel Reeves stressed the urgency of Labour’s initiatives to improve living standards and stimulate economic growth. She outlined plans to reinstate mandatory local housebuilding targets and relax planning restrictions on ‘ugly’ parts of the green belt, rebranded as the ‘grey belt’ by Sir Keir Starmer. The new draft National Planning Policy Framework, expected before the parliamentary recess in August, will also lift the effective ban on new onshore wind turbines.
Reeves will focus on growth as a central theme of Labour’s agenda following its landslide election victory. Economists predict that Labour will need to either raise taxes or cut public spending to balance the budget. Starmer has dismissed these forecasts as ‘defeatist’ and ‘cynical,’ asserting Labour will exceed growth expectations.
Addressing the nation, Reeves stated: ‘Last week, the British people voted for change. Over the past 72 hours, I have initiated the work necessary to honour that mandate. Our manifesto was clear: ‘Sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people.’ Where previous governments have hesitated, I will act decisively. This is now a national mission. There is no time to waste. I want to outline the initial steps this new government is taking to lay the economic foundations for rebuilding Britain and enhancing prosperity nationwide.’
Labour’s policy will overturn controversial planning changes introduced last year by Michael Gove, which allowed councils to disregard housing targets to protect local character or green belt areas. These changes led to many local authorities cancelling planned housing developments, potentially reducing new home builds by 70,000 annually. Recent statistics indicate a significant decline in housing starts and completions, with only 151,000 homes built in the year to March — a 22% decrease from the previous year.
Starmer and Reeves have committed to building 1.5 million homes during this parliamentary term. The planning reforms, led by Deputy Prime Minister Angela Rayner and Planning Minister Matthew Pennycook, aim to defy stagnant growth forecasts by prioritising brownfield sites while acknowledging the necessity of utilising some green belt land. Currently, about 13% of England’s land is designated as green belt, with only 7% of this developed. Labour’s new ‘grey field’ classification will include areas such as car parks and green spaces lacking significant beauty or character.
Reeves will utilise Treasury analysis to critique the previous Conservative government’s economic record, stating: ‘We face the legacy of 14 years of chaos and economic irresponsibility. New Treasury analysis I requested reveals the lost opportunities from this failure. Had the UK economy grown at the average rate of OECD countries since 2010, it would have been over £140 billion larger, generating an additional £58 billion in tax revenues last year alone to support our public services. It falls to this new government to rectify these foundational issues.’
Labour is poised to implement significant reforms aimed at revitalising the housing sector and rectifying past economic missteps.
