Boosting the UK economy must trump Labour’s dash for net zero, says Rachel Reeves as new push for growth sets collision course with Ed Miliband

Boosting the economy must trump Labour’s dash for net zero, Rachel Reeves said yesterday – as she and Keir Starmer launched a new push for growth.

In the clearest statement yet of the Government’s new priorities, the Chancellor said projects which could boost growth should not be held back because they ‘might add something to carbon emissions in 20 years’ time’.

Asked whether she would choose to prioritise the economy or tackling climate change, she said growth was her ‘number one mission’, adding: ‘It’s obviously the most important thing.’

Her comments put her on 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 the UK’s anaemic growth figures, the Prime Minister will today unveil plans for sweeping reforms of the judicial review system used by ‘virtue-signalling’ protesters to hold back major developments.

The PM said the Government was ‘putting an end to this challenge culture by taking on the Nimbys and a broken system that has slowed down our progress as a nation’. More than half of all major infrastructure projects are currently challenged in the courts – sometimes on multiple occasions – adding years of delay and millions of pounds in extra costs.

Rachel Reeves attends the World Economic Forum in Davos, Switzerland. The Chancellor said growth was her ‘number one mission’

Ms Reeves (pictured with Keir Starmer) said projects which could boost growth should not be held back because they ‘might add something to carbon emissions in 20 years’ time’

In future, campaigners bringing ‘vexatious’ cases with no realistic prospect of success will be allowed just one judicial review, instead of the current three.

Writing in the Mail, Sir Keir said that a ‘small minority should not be able to abuse our legal system to hold the country to ransom’.

He said that lengthy court delays meant ‘roads and railways are left in disrepair… houses for hardworking Brits aren’t built, businesses hit by higher costs. 

And for what? So some people can pat themselves on the back, while others can’t get to work or afford a home. At best, it’s naive. At worst, it’s self-righteous virtue signalling.’

In his article today, Sir Keir singles out former Green Party councillor Andrew Boswell, who has used crowd-funded judicial reviews to delay a number of major projects.

The interventions come amid growing government alarm that sluggish economic growth could derail Labour’s plans.

Ms Reeves is expected to announce backing for airport expansion at Heathrow, Gatwick and Luton next week, despite warnings it will end hopes of hitting the UK’s climate targets. Greenpeace said the move ‘smacks of desperation’.

At the World Economic Forum, in Davos, yesterday, the Chancellor said growth was the Government’s top priority ‘because growth underpins everything else, whether that is improving our schools and hospitals or indeed being able to get to net zero’.

The Prime Minister is set to unveil sweeping reforms of the judicial review system today to prevent eco-zealots from holding back major developments

The Royal Courts of Justice building. In future, campaigners bringing ‘vexatious’ cases with no realistic prospect of success will be allowed just one judicial review, instead of the current three

Campaigners had argued in court that the government had failed to assess the environmental impact of the Sizewell C nuclear power station 

She said ministers were determined to ‘shake up’ a planning system seen by business as ‘insane’. She said: ‘It takes too long to get things done, whether that’s building energy infrastructure, transport or digital.

‘There’s always a reason not to invest, always a reason not to build. There’s bats and newts, it might add something to carbon emissions in 20 years’ time. It may make the view from my house a little bit less nice.

‘But if we always say no, lo and behold we’ll have the same outcome of poor growth and deteriorating living standards.’

Ms Reeves did not comment directly on support for a third runway at Heathrow, but said that recent approvals at Stansted and City airports demonstrated ‘the commitment of this government to make 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 to block a third runway in 2008. Mr Miliband (pictured below) threatened to resign from the last Labour government over the issue. Government sources yesterday insisted that the drive for growth is not incompatible with net zero.

But, in a further sign at irritation over the impact of environmental protection laws, the Government also unveiled plans that will prevent bodies such as the Environment Agency blocking developments.

An artist’s impression of how the expanded Heathrow Airport site could look

At present, developers have to agree mitigation or compensation before they can disturb protected sites or species. In future, they will be able to pay into a new ‘Nature Restoration Fund’ in return for permission to get started more quickly.

Business leaders have blamed Budget tax rises, coupled with negative comments from ministers for denting confidence and so damaging the prospects for growth. 

Ms Reeves defended the Budget but hinted she would like to ease Britain’s record tax burden in the long term. ‘My instinct is to have lower taxes, less regulation, make it easier for businesses to do business,’ she said.