Chancellor of the exchequer Rachel Reeves has announced plans for a new industrial strategy aimed at growing the economy and unlocking investment.
Chancellor Reeves announced the new strategy alongside a series of measures during the Labour conference 2024 held in Liverpool, ahead of the first Labour Budget in 14 years.
The package of measures aim to help the new Labour government to deliver on pledges made during their election campaign. Here’s how the new measures will affect business in construction…
Industrial Strategy
The Chancellor announced, alongside business secretary Jonathan Reynolds, that the government will publish plans for a new industrial strategy.
The strategy will aim at growing the economy and unlocking investment, with a focus on making Britain a clean energy superpower and accelerating to net zero, propelling regional growth.
A green paper will be published around the Budget in October outlining the long-term sectoral growth and priority industries of the government, ahead of the final strategy published in the spring of 2025 following a consultation with business.
Reeves called the strategy one for “driving and shaping long-term growth in our manufacturing and service sectors”
She said: “[It’s a] strategy to unlock investment, create jobs and deliver prosperity; a strategy to help break down barriers to regional growth Speed Ahead to Net Zero and clean Power by 2030 and build prosperity on strong and secure foundations.
“When I said that this labour party is proudly Pro-business and proudly pro-worker I meant it.”
HMRC package
The chancellor also outlined a package of reforms aimed at improving the UK’s tax system to help fix the foundations of the UK economy.
HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses.
E-invoicing aims to reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns – all helping to close the tax gap.
This follows the Department for Business and Trade announcing last week new measures to support small businesses and the self-employed tackling late payments.
The crackdown will see the government consult on new laws which will hold larger firms to account and get cash flowing back into businesses.
Budget
The chancellor is due to present the government’s first budget to Parliament on October 30.
Getting Britain rebuilding and growing the economy have been at the top of the agenda for the new Labour government since they took office in July.
Following their election victory, Reeves said it had “inherited the worst set of circumstances since the second world war” regarding government finances.
Shortly after, the new chancellor alleged the Labour government had inherited a nearly £22 billion blackhole from the previous Tory government.
This was then followed by a number of plans and projects that were scrapped to reduce government overspend, with Reeves stating: “If we cannot afford it, we cannot do it.”
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