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Chancellor Rachel Reeves has confirmed that a new industrial strategy will be unveiled next month, reaffirming the government's unwavering commitment to achieving clean energy goals. In a bold keynote address at the Labour Party Conference this afternoon, she made it clear that austerity is not on the table, declaring that "the era of trickle down, trickle out, economics is over." Instead, she pledged to ramp up investment in the fast-growing green sector, signalling a transformative shift in the UK's economic approach.
Speaking to a packed audience in Liverpool, Reeves emphasised Labour's determination to overhaul the planning system, promising to tackle the "blockers" stifling progress. Despite acknowledging the current fiscal challenges, she assured that the government remains focused on channelling investment into critical infrastructure and industries, particularly those driving the clean energy transition. This strategy aims to power the nation's green ambitions while fueling sustainable economic growth.
"'Growth is the challenge and investment is the solution... It is time that the Treasury moved on from just counting the costs of investment to recognising the benefits too," she said. "So we are calling time on the ideas of the past, calling time on the days when governments stood back, left crucial sectors to fend for themselves, and turned a blind eye to where things are made and who makes them. The era of trickle down, trickle out, economics is over."
Reeves' remarks are expected to spark further speculation that the Treasury may adjust its fiscal rules, potentially granting more flexibility for borrowing to invest in critical infrastructure projects.
Her speech, briefly interrupted by protesters from the campaign group Climate Resistance—who objected to Labour's position on arms exports to Israel—also included a key announcement. Reeves confirmed that she will publish a comprehensive new Industrial Strategy with Business Secretary Jonathan Reynolds next month. This plan will detail how Labour intends to stimulate investment in pivotal sectors and ensure the UK "speeds ahead" toward net zero and clean energy targets, reinforcing the nation's commitment to a sustainable future.
She also promised that the government's upcoming Investment Summit next month would send the message that "after years of instability and uncertainty, Britain is open for business once again."
Reeves also argued that Labour had done more to remove planning barriers within 72 hours of taking office than the Conservative government had achieved in 14 years, including lifting the "senseless Tory ban on onshore wind."
"I have promised this hall before, but what you will see in your town, in your city, is a sight that we have not seen often enough in our country - shovels in the ground, cranes in the sky, the sounds and the sights of the future arriving," she said. "We will make that a reality.
"Jobs in the automotive sector of the future in the industrial heartland of the West Midlands, jobs in life sciences across the north-west, clean technology across South Yorkshire, a thriving gaming industry in Dundee, and jobs in carbon capture and storage on Teesside, Humberside and right here on Merseyside too."
The speech heightened expectations that the government would be close to finalising the long-anticipated policy and subsidy framework. This is crucial for developers who have long argued that such a framework is essential to advancing the UK's carbon capture and storage projects, enabling them to reach critical final investment decisions.
During her address, Reeves also took a firm stance on the government's contentious move to scrap the Winter Fuel Allowance for most pensioners, blaming the previous administration for leaving a £22bn deficit in the budget. However, she quickly pivoted to a more optimistic outlook, outlining Labour's vision of restoring economic stability. Reeves emphasised that this stability would be the foundation for unlocking much-needed investment and driving economic productivity.
Her remarks followed a speech by Foreign Secretary David Lammy the day before, where he highlighted climate action as a core pillar of Labour's broader economic and foreign policy agenda. These speeches underscore Labour's focus on integrating sustainability and economic growth into its strategic vision.
"In a world filled with conflict, it is easy to take our eyes off the most fundamental threat that our world faces - the climate emergency - [which was] treated by the last government with a cynical disdain that we cannot afford," he said. "With Keir Starmer and [Energy Security Secretary] Ed Miliband, I will help restore Britain's climate leadership for British jobs, opportunity and growth. Because climate matters."
He highlighted how Labour would lead a new Global Clean Power Alliance, deliver the latest Great British Energy investment vehicle, accelerate onshore wind development, appoint new climate and new nature envoys, and honour its pledge to "end new oil and gas licences while guaranteeing a fair transition in the North Sea".
David Walsh, head of public affairs at WWF, welcomed the speeches and urged the Chancellor to ensure the upcoming Budget delivers on her promise to be 'Britain's first green chancellor'.
"Whether it's investing in clean, cheap British energy or supporting our farmers so they are fairly rewarded for transitioning to regenerative practices, nature and a safe climate underpin the health and wealth of our nation," he said. "At the Budget, we urge the government to provide certainty and enable investment by putting the climate and nature crisis at the heart of its plans."
Rain Newton Smith, director general at the CBI, also welcomed Reeves' address, praising the Chancellor for "hitting the right notes in a speech that balanced the need for fiscal responsibility with an optimistic pitch to investors about the strengths of the UK economy."
"Businesses will be further reassured to hear that while the government won't duck difficult decisions, they will be taken in the context of a return to long-term sustainable growth," she said. "Building capacity back into the economy, publishing a new industrial strategy, and reforming business rates will all give investors confidence that the UK is open for business. While stability in terms of the government's tax plans - particularly around headline corporation tax - will help to deliver a dose of the certainty that businesses crave."
Later today, the Labour Party Conference will hear from Environment Secretary Steve Reed and Energy Security and Net Zero Secretary Ed Miliband, who are expected to outline critical environmental and energy policies.
Reed anticipates sharing more about Labour's strategy to invest in water infrastructure to address the growing sewage crisis. Meanwhile, Miliband is set to confirm that Labour will reintroduce energy efficiency regulations for rented properties—following the Conservative government's decision last year to scrap similar proposals.
According to The Times, Labour plans to launch a consultation on regulations requiring all rented properties to achieve an Energy Performance Certificate (EPC) rating of C or higher by 2030. Miliband is expected to announce that these rules will apply not only to private rentals but also to social housing.
The Conservative government had previously abandoned the minimum energy efficiency standards, citing concerns over the financial burden they would place on landlords, which could ultimately lead to higher costs for tenants. However, Labour is determined to revive these regulations, believing they will substantially reduce energy bills and carbon emissions for tenants. The proposed policy will likely include a cap on the financial responsibility of landlords for meeting these standards, coupled with additional funding for domestic energy efficiency upgrades as part of Labour's broader agenda to support the transition to greener living.
The proposals were welcomed by Simon Francis, coordinator of the End Fuel Poverty Coalition, who highlighted how "people in rented accommodation are almost twice as likely to live in cold, damp homes compared with people who own their own properties".
"The Energy Secretary is to be congratulated for recognising the importance of the need for better energy efficiency standards in rented homes, but the government shouldn't drag their heels with more consultations," he said. "This issue has been consulted widely in the past, and ministers must move to take action. There is no time to waste as improvements will take months or years to be felt by tenants, and the longer it takes, the more support households will need to stay warm in the winter."
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