Chancellor Rachel Reeves Growth Plans for UK

UK Super Tanker Pension Funds Invest in UK

Earlier this week, Rachel Reeves confirmed that she will introduce new laws to require UK defined benefit (final and career average salary) pension schemes to invest a minimum amount in the UK.  Unlike other countries such as Australia, where superannuation schemes are required to invest a minimum in Australia, UK pensions schemes do not have to do this meaning £billions of UK pension money is invested overseas providing capital, funding, and developing other economies rather than the UK economy.  It is estimated that an additional £60 billion off defined benefit scheme ‘surplus’ will invest in UK firms.

• Comment – it is probably ‘about time’ to put the UK economy on a level playing field with others although we cannot see this making a major difference given our health and social care budget is already treble this each year.

Today, 30^th January 2025, Mrs Reeves also published her plan to get the UK into growth again given the current stagnation.

Heathrow Expansion

The government will back the plan to build a third runway at Heathrow, provided it meets ‘environmental and climate objectives’ and claiming it will create 100,000 jobs.  This is in addition to plans for expanding Stanstead and London City airports.

Decisions will also shortly be made about expanding Gatwick and Luton airports as well as government working with the Mayor of South Yorkshire to revive Doncaster Airport as well as a new logistics hub at Manchester Airport meaning another 2,000 jobs.

• Comment – this is going to take years to offer any benefit. Imagine the legal battles to come on building a third runway.  This could be 10 years away yet so is all ‘noise’ and ‘spin’.

UK ‘Silicon Valley’

Mrs Reeves also vowed to build a European Silicon Valley between Cambridge and Oxford.  Utilising the ‘tech hubs’ already there and aiming for the UK to become the AI centre of the planet and make better use of the academic ‘resources’ that are in and around Cambridge and Oxford. It is estimated that will could develop £78 billion of additional income in addition to 4,500 new houses and developments to road and rail connections between the two cities.

• Comment – ChatGPT is already here as is DeepSeek (China) now, the UK has some way to go, but we are already a centre for gaming development, so we have to be part of AI as well as Green Energy development.

New Reservoirs

Plans are made to build to new reservoirs at Abingdon (near Oxford) and the Fens (near Cambridge) at a cost of c£8bn.

• Comment – infrastructure for the new UK Silicon Valley no doubt.

Old Trafford Redevelopment

Pending the decision of the Manchester United board to redevelop Old Trafford or build brand new 100,000-seater stadium to create another sports and leisure hub in Manchester, the Government alongside Greater Manchester Council has agreed to fund moving three rail freight terminals, releasing land for the sports hub and 4,500 new homes.

• Comment – not exactly growing the UK economy on a global scale and 4,500 houses is a ‘drop in the ocean’.  This is merely recycling money around the UK economy rather than earning money or overseas orders.  This is also a longer-term project rather than delivering results in the next few years.

Another Thames Crossing

Government is looking to private finance to fund the £9bn Lower Thames Crossing (the UK’s longest road tunnel).

• Comment – another South East focussed project that may take some strain off the Dartford Crossing.

National Wealth Fund Investments

The National Wealth Fund was set up by Labour.  £65m has been set aside for Connected Curb (electric vehicle charging company) and £28m for Cornish Metals , mining materials that are key to electric vehicle, solar panel and wind turbine construction.

• Comment – these are good investments we believe, investing in projects that can not only benefit the UK but also attract overseas orders should be the real goal of the government to increase UK wealth rather than recycle UK wealth with infrastructure projects.