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Rachel Reeves will call on skeptical Labor MPs on Monday to back her plans to boost the UK economy, including a highly contentious proposal to expand Heathrow Airport.
The chancellor has faced criticism from some in his own party for allegedly putting business over consumers and backing a third runway at Britain’s busiest airport, amid fears it could hit the government’s environmental targets.
But Reeves He will seek to confront her critics when he meets the parliamentary Labor party on Monday, telling MPs that without growth they will not be able to fund the public service improvements they want.
Reeves, who met investors at the World Economic Forum in Davos this week, will also spend the next two days meeting with top executives in an attempt to convince them he has a credible growth strategy.
Many business leaders fear her policies have contributed to a stagnant economy.
On Sunday, Reeves confirmed in force that he will back the construction of a third runway at Heathrow when he delivers a “growth” speech on Wednesday, insisting the aviation industry becomes greener.
Asked about London Mayor Sir Sadiq Khan’s claims that the policy would hit clean air and net zero targets, Reeves said: “A lot has changed in terms of aviation.”
She told the BBC’s Laura Kuenssberg that sustainable aviation fuels were becoming available and that “a third runway will mean that instead of circling London, flights can land at Heathrow”.
Reeves said she had already agreed to expand London City and Stansted airports and was expected to approve expansions at Gatwick and Luton on Wednesday, marking a huge expansion of London’s airport capacity.
A third runway was first proposed by the last Labor government in 2003 on economic grounds, but subsequent Conservative administrations have tried and failed to progress the scheme.
Khan and environmental groups have long objected, citing the legally binding UK target of reaching net zero carbon emissions. But this week energy secretary Ed Miliband, who threatened to resign over the issue during Gordon Brown’s government, said, he said He would not leave his role If the third runway is approved.
Paul McGuinness, chairman of the Third Runway Coalition, said: “Expansions at other London airports undermine the case for Heathrow’s uniquely complicated and expensive third runway, making it an even riskier, if not indefensible, proposition. “
Left-wing labor lawmakers are also concerned that Reeves is tilting the regulatory landscape in favor of big business and away from consumers, with one saying, “He’s going after big corporations.”
But the chancellor insisted that without radical change Britain has inadequate growth and the government will fail to meet its target of 1.5 million new homes in this parliament.
“Too often the answer to new development has been ‘no’. But it’s an attitude that has sidestepped economic growth and left working people worse off,” she said. “I don’t believe low growth is our destiny.”
Reeves has announced new plans to speed up the construction of new homes near train stations, as part of reforms under the new Planning and Infrastructure Bill.
The Treasury said the new rules would ensure that when developers applied for eligible types of schemes in key areas – such as near busy transport hubs – the default answer would be “Yes”.
Reeves also supported the regeneration project around Manchester’s Old Trafford, championed by Mayor of Greater Manchester Andy Burnham.
The Treasury said it would “see the new residential, commercial and public space as a shining example of a bold model for development that will drive growth across the region”.
Manchester United have plans Renovate or refurbish Old Trafford, which city leaders claim could launch one of the “biggest urban regeneration projects in the UK”.
The Premier League club will decide by the end of this season whether to build a new 100,000-capacity ground, creating the largest stadium in the country, or to upgrade and expand the existing one.
Burnham called the proposal “the biggest opportunity for urban regeneration” since the 2012 London Olympics.
