In her speech, Reeves sought to inject some optimism and confidence into the economy, which has taken a battering in recent months as growth has flatlined.
She hit back at Conservative claims that her “job destroying” Budget was to blame, insisting she had “no alternative” but to increase employers’ National Insurance to restore stability.
She did not explicitly rule out further tax increases in the spring – but insisted the government had “begun to turn things round” and was determined to go “further and faster” to boost growth.
She described the UK as a country of “huge potential” which had been “held back” for “too long” because politicians lacked the “courage” to challenge the status quo.
“Low growth is not our destiny, but growth will not come without a fight, without a government willing to take the right decisions now to change our country’s future for the better,” she added.
The government has made growth its top priority because so many of its other plans – to improve public services and living standards, as well as its chances of winning the next election – depend on it.
Reeves said a third runway at Heathrow was “badly needed” to boost trade across the UK and she was “inviting proposals to be brought forward” by the summer, with money expected to come from the private sector.
The government insists advances in aviation meant a third runway would not break its carbon reduction rules – but it is still being fiercely resisted by environmental campaigners and Labour’s London Mayor Sadiq Khan.
Reeves says she is keen to get on with the project, although it is unlikely to be completed until the mid 2030s, saying it was an example of the government taking bold decisions in the public interest.
Other projects announced today include a major redevelopment of Old Trafford, the area around a new stadium for Manchester United, and a plan to bring Doncaster/Sheffield airport back into use and boost industry at East Midlands airport.
The government also promised better rail and road links to cut the journey time between Oxford and Cambridge, as well as new reservoirs to address water shortages in the area and investment in high tech industries.
Reeves claimed the new “growth corridor” would add up to £78bn to the UK economy by 2035.
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