Rachel Reeves: 'Iron Chancellor' needs flexibility to get growth

Published On Jan 31, 2025, 6:00 AM

The UK Chancellor Rachel Reeves has faced challenges in promoting economic growth while managing public finances. Despite initial turbulence in the global bond markets and a falling pound, recent pro-growth measures include plans for a new Heathrow runway, easing visa restrictions for skilled workers in AI and life sciences, and pledges for infrastructure investment. However, Reeves has not committed public funds to these initiatives and faces criticism for potential job losses due to rising labor costs ahead of national insurance increases. Her focus on increasing the supply of goods and services indicates a long-term strategy, but concerns remain about inflation and unemployment rates. The broader economic environment will require careful navigation of domestic and international pressures.