Labour government warns of dire UK finances as it begins first full week in office
Rachel Reeves, Britain’s first woman chancellor of the exchequer, said the new Labour Party government had inherited “the worst set of circumstances since the second World War” as she ordered a review of government spending.
As the UK government bedded in on Monday following last week’s landslide election victory, Ms Reeves gave a speech at the treasury about her plans to shore up the UK’s finances and stimulate the economic growth she covets to fund her plans.
Ms Reeves pledged to streamline the planning system to spur growth by building more houses, and to restore national housebuilding targets. She also said she would end an effective ban on building new onshore wind farms in Britain.
“The question is not whether we want growth, but how strong is our resolve? How prepared are we to make the hard choices and face down the vested interests?” she asked.
[ UK will act as ‘honest broker’ on question of Border poll, says Starmer ]
Labour has promised to facilitate the building of 1.5 million new homes over the five years of the next parliament.
Prime minister Keir Starmer’s new cabinet got down to business on Monday while 334 new MPs flooded parliament in Westminster to pick up their access passes and find their way around. Labour returned 412 MPs in the election last week, while the Conservative Party won just 121 seats.
On Monday, Mr Starmer visited Wales in the afternoon, following his visit to the North earlier in the day. On Tuesday, he is due to host England’s 12 directly elected mayors at Downing Street for a breakfast meeting to discuss how to use the devolution of powers to local officials to speed up decision-making and development.
The new education secretary Bridget Phillipson spent Monday working on plans to hire 6,500 new teachers for Britain’s schools, according to a Downing Street spokesman. The new health secretary, Wes Streeting, met the British Dental Association to discuss the way forward.
[ Starmer seeks ‘immediate reset’ of relationship with North, Scotland and Wales on UK tour ]
Mr Starmer made the final few appointment to his ministerial team. There was no place for Emily Thornberry, who was his shadow attorney general. She released a statement saying she was “surprised and disappointed” not to have been given the job, but promised to back the government.
Mr Starmer appointed Annelise Dodds as minister for women and equality, a role which will allow her to attend cabinet meetings although she will not sit on Labour’s front bench.
[ NI Secretary Hilary Benn promises to form new relationship between UK government and Stormont ]
MPs will be sworn in to the House of Commons in batches this week. Mr Starmer is due to be sworn in for the new session of parliament on Tuesday, following the election of the speaker. He will then fly to the US for the Nato summit being hosted by US president Joe Biden.
The prime minister has already effectively scrapped the previous government’s Rwanda refugee deportation scheme. Labour is also due to lay out plans soon for the renationalisation of Britain’s railways.
- Sign up for push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Listen to our Inside Politics podcast for the best political chat and analysis
