UK Chancellor vows to build renewed economy amid growth challenges

Alsharq Tribune-AFP 

British Chancellor Rachel Reeves has vowed to build a renewed economy, rejecting austerity, supporting public services, boosting investment and decreasing inflation.

When addressing the Labour's annual party conference on Monday, Reeves laid out some specific measures, including funding libraries in primary schools, offering job opportunities to qualified young people who are out of work or education over a certain period of time, tackling the housing crisis, ensuring fiscal stability and improving infrastructure.

The British economy has been faced with multiple challenges in the second half of this year, with the real GDP showing no growth in July, consumer prices rise in August remaining the highest since January 2024.

As Reeves is expected to announce a budget in late November, businesses will welcome the Chancellor's clear intent to tackle the UK's economic challenges head-on, according to Rain Newton-Smith, chief executive of the Confederation of British Industry.

But he cautioned that the real test of success will be how effectively the government uses every policy lever available to cut costs and complexity for business and unlock the investment urgently needed.

With just weeks to go until her budget, the Chancellor was always unlikely to give much away today and ter speech was largely about setting the tone for this Autumn's challenging fiscal statement, said Shevaun Haviland, director general of the British Chambers of Commerce.

Haviland also noted that the impact of the national insurance rise continues to be felt and has hit confidence, investment and recruitment and that the Chancellor must use the tax system to incentivize investment and growth.