Rachel Reeves has set out the next phase of the government’s growth plan around three priorities: a closer and more stable economic relationship with the EU, a step change in Artificial Intelligence and frontier technology, and stronger growth in every region and nation of the UK. The plan is presented as part of a broader economic approach focused on stability, investment and reform in a more uncertain global environment. The government says these priorities are intended to support higher growth, better jobs, and greater economic security.
Relations with the EU will be guided by new National Interest Principles, under which the UK would consider aligning with EU rules where that supports long-term growth, benefits consumers, encourages investment and better jobs, strengthens security and resilience, and gives businesses greater certainty. The government says this would not mean a return to free movement. It also highlighted a shared burden-reduction agenda, noting that the EU is targeting a reduction in administrative burdens of at least 25% for all businesses and 35% for SMEs, including cutting recurring administrative costs by €37.5 billion by the end of its mandate; the UK has committed to cutting the administrative burden of regulation by 25% by the end of the Parliament – or £6 billion savings per year for businesses. The government also plans more structured engagement with companies on EU regulatory issues.
Regional growth measures are centered on devolving power and backing places with existing industrial strengths. City Investment Funds will provide £2.3 billion of new grant, loan, and patient capital funding for mayors in the largest city regions, focused in the North and Midlands. The Oxford-Cambridge Growth Corridor will receive funding doubled to £800 million to remove barriers to development, and the government said it will use new compulsory purchase powers to move stalled sites and reinvest land value gains into homes, infrastructure and regeneration. A roadmap for fiscal devolution will be developed for the Autumn Budget, covering how regional leaders could allocate a share of some national taxes, including income tax. Additional measures include £150 million clusters investment from the British Business Bank across five northern areas and £10 million for Team Derby.
On technology, the government says it wants the UK to become the fastest adopter of Artificial Intelligence in the G7. Growth Labs will use new sandboxing powers to test innovations in live markets with time-limited regulatory changes and supervision. A Sovereign Artificial Intelligence Unit, backed by £500 million and launching 16 April, will support UK Artificial Intelligence companies with investment, practical support and access to compute. In quantum, the plan includes up to £2 billion over the next decade, including over £1 billion in the next four years and up to £1 billion to buy commercial-scale quantum computing capability in the UK beyond 2030. The government will also hold its first Artificial Intelligence Adoption Summit in June during London Tech Week and create an Artificial Intelligence Economics Institute to study the effects of Artificial Intelligence on jobs and productivity.
