Boosting the economy must trump Labour's drive to net zero, Rachel Reeves said yesterday – as she and Keir Starmer launched a new boost to growth.
In the clearest statement yet on the government's new priorities, the chancellor said projects that could boost growth should not be held back because they could “add to CO2 emissions in 20 years' time.”
Asked whether she would choose to prioritize the economy or tackle climate change, she said growth was her “mission number one,” adding: “It's clearly the most important thing.”
Her comments put her on a collision course with Ed Miliband, who has pushed to make his controversial net zero targets the government's top priority.
In a further sign of ministers' unease over Britain's lackluster growth rates, the Prime Minister will today unveil plans for major reforms to the judicial review system used by 'virtue-signalling' protesters to block major developments.
The Prime Minister said the government was “ending this culture of challenge by taking on the Nimbys and a broken system that has slowed our progress as a nation.” More than half of all major infrastructure projects are currently being challenged in court – sometimes multiple times – causing years of delays and millions of pounds in additional costs.
Rachel Reeves attends the World Economic Forum in Davos, Switzerland. The Chancellor said growth was her “mission number one”.
Ms Reeves (pictured with Keir Starmer) said projects that could boost growth should not be held back because they could 'add to carbon emissions in 20 years' time.
In future, campaigners who bring 'vexatious' cases with no realistic prospect of success will face just one judicial review, rather than the current three.
Sir Keir wrote in the Mail that a 'small minority should not be able to abuse our justice system to hold the country hostage'.
He said lengthy delays at the courts meant 'roads and railways have fallen into disrepair… homes for hardworking Britons are not being built and businesses are being hit by higher costs.
And for what? So some people can pat themselves on the back, while others can't get a job or afford a house. At best it is naive. At worst, it is a sign of self-righteous virtue.”
In his article today, Sir Keir mentions former Green Party councilor Andrew Boswell, who has used crowdfunded judicial reviews to delay a number of major projects.
The interventions come amid growing alarm in the government that slow economic growth could derail Labour's plans.
Ms Reeves is expected to announce her support for the expansion of Heathrow, Gatwick and Luton airports next week, despite warnings it will end hopes of meeting Britain's climate targets. According to Greenpeace, the measure smacks of desperation.
At the World Economic Forum in Davos yesterday, the Chancellor said that growth is the government's top priority 'because growth is the foundation for everything else, whether that is improving our schools and hospitals or even being able to reach net zero '.
She said ministers were determined to “shake up” a planning system seen as crazy by the business community. She said: “It takes too long to get things done, whether it's building energy infrastructure, transport or digital.
'There is always a reason not to invest, always a reason not to build. There are bats and salamanders, which could add to CO2 emissions in twenty years. It might make the view from my house a little less beautiful.
The Prime Minister will today unveil sweeping reforms to the judicial review system to stop eco-fanatics blocking major developments
The building of the Royal Court of Justice. In future, campaigners who bring 'vexatious' cases with no realistic prospect of success will face just one judicial review, rather than the current three.
Campaigners had argued in court that the government had failed to assess the environmental impacts of the Sizewell C nuclear power station
“But if we always say no, we will have the same result: poor growth and deteriorating living standards.”
Ms Reeves did not comment directly on support for a third runway at Heathrow, but said recent approvals at Stansted and City airports “demonstrated this government's commitment to making Britain an international trading nation”.
Any move to revive plans to expand Heathrow will split Labour. Seven members of the Cabinet, including Sir Keir, voted in 2008 to block a third runway. Mr Miliband (pictured below) threatened to resign from the last Labor government over the issue. Government sources yesterday stressed that the pursuit of growth is not incompatible with net zero.
But in a further sign of irritation at the impact of environmental protection laws, the government has also unveiled plans that will prevent agencies such as the Environment Agency from blocking developments.
Currently, developers must agree on mitigation or compensation before they can disturb protected areas or species. In the future, they can contribute to a new 'Nature Recovery Fund' in exchange for permission to get started more quickly.
Business leaders have blamed tax increases in the budget, coupled with negative comments from ministers, for eroding confidence and thus damaging growth prospects. Ms Reeves defended the budget but hinted that in the long term she would like to ease Britain's record tax burden. “My instinct is to have lower taxes and less regulation, which makes it easier for companies to do business,” she said.
