Earlier today the Chancellor, Rachel Reeves, gave a wide-ranging speech outlining how the Chancellor “vows to go further and faster to kickstart economic growth”.
However, what did the speech mean for you, your business and your local area. We breakdown the five key points and how they may impact your business.
Resetting EU Relationship:
Towards the beginning of her speech, Rachel Reeves made reference to resetting the UK’s relationship with our “nearest and our largest trading partner”. Exact details on what this reset entailed were lacking however, expect to see negotiations and conversations on areas such as mutual recognition and veterinary agreements to continue throughout the year.
The BBC quoted Lib Dem leader Sir Ed Davey as saying that the Prime Minister should “drop his objections to a UK-EU customs union and other “growth damaging trade barriers””.
Third runway at Heathrow Airport:
Rachel Reeves confirmed the heavily leaked story that the Government supports a third runway being built at Heathrow airport.

Currently, around three-quarters of all long-haul flights in the UK go from Heathrow, while 60% of UK air freight comes through the airport. In terms of business travellers, around 15million used the airport in 2023 according to the Chancellor.
A study from Frontier Economics, claimed that a third runway could increase potential GDP by 0.43% by 2050 and create over 100,000 jobs. The Chancellor hopes that by building a third runway at the UK’s only hub airport, we can boost investment, increase exports and make the UK as a whole more open and connected.
Kickstarting Trade Deal Talks with India:
It was announced that the Business & Trade Secretary, Jonathan Reynolds, will “shortly visit India to restart talks on the free trade agreement”.
Negotiations on a trade agreement with India had previously taken place under the last Government however they stalled shortly prior to both countries undergoing their own national elections. A trade agreement with the UK’s 11th biggest export and import market is seen as a major target and would be seen as one of the UK’s most financially beneficial bilateral trade agreements.
Visa System and Skilled Staff:
While discussing the different opportunities within the UK, the Chancellor announced that “businesses can only realise these opportunities if they can recruit the skilled staff they need”.
To help businesses recruit, the government plan to reform our employment system and touched upon the Skills England that they have created to meet the needs of the sectors such as construction and engineering.
However, the Chancellor also touched on the plans announced last week to attract global talent by restructuring the “visa routes for very highly skilled people”.
Oxford, Cambridge & “Europe’s Silicon Valley”:
The Chancellor described Oxford and Cambridge as having “the potential to be Europe’s Silicon Valley”. To create this vision, the Chancellor vows to reduce the current two and a half hours train commute between the two cities and to create direct rail links between Bedford and Milton Keynes to Cambridge.
New rail services and improved road infrastructure will also support “vibrant new and expanded communities along the route” including “4,500 additional homes, new schools, and new office, retail and laboratory space”.
Lord Patrick Vallance was also announced as the Champion for the Oxford Cambridge Growth Corridor which means he will be working with local leaders and Housing & Planning Ministers to deliver projects within the area.
Overall, Reeves stated that the Oxford and Cambridge Growth Corridor “could add up to £78 billion to the UK economy by 2035”.
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