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Rachel Reeves told an audience of financial and business leaders that she had \u201cearned credibility\u201d as chancellor and had laid the foundations for Andy Burnham to grow the economy.<\/p>\n
Delivering her third, and probably final, Mansion House Speech in the City of London, Ms Reeves set out her record on creating stability and paving the way for investment and closer ties with the European Union<\/p>\n
\u201cThis government has shown that change, indeed radical change, is possible\u2026and the record of the last two years makes clear that governments can achieve that change only when they combine radicalism with credibility,\u201d she said.<\/p>\n
\u201cI had to earn that credibility in opposition, and I have proven it in government in every action that I have taken since I became Chancellor.\u201d<\/p>\n
Her critics will accuse her of re-writing the past two years and ignoring the collapse in business confidence, rising company failures and unemployment, particularly among the young, as well as undermining both the hospitality and oil & gas industries.<\/p>\n
During her speech, Ms Reeves made no admissions of failure, nor any concessions to change any policy decision. <\/p>\n
She made no reference to the much-maligned decision to increase employers\u2019 national insurance contributions or the increase in capital gains tax on entrepreneurs selling their business.<\/p>\n
\u201cI\u2019m proud to report that the British economy is strong,\u201d she declared, backing up her statement with figures, stating that Britain had the fastest growth in the G7, with productivity and wages both rising.<\/p>\n
\u201cIf I had said two years ago that this is where we would be today, people would have doubted it, but we have proven the doubters wrong,\u201d she said. \u201cThrough strength, resilience and determination, Britain has beaten the odds once again.\u201d<\/p>\n
She said she had built stability on an approach called securonomics \u2013 an investment-led growth model for Britain.<\/p>\n \u201cI am optimistic about our country\u2019s potential, the economic future that is within our grasp,\u201d she declared.<\/p>\n In a message seeming to reference Mr Burnham\u2019s devolution plans, she said the next phase would involve \u201cbuilding growth in every part of our country, breaking with the failed idea that prosperity can be built from only a few narrow parts of Britain.\u201d<\/p>\n A second thread would be a concerted drive to make sure the jobs, industries and innovations of the future are built here in Britain, and the third would be \u201cconfronting head-on the damage done by Brexit by building much deeper ties with our largest and closest trading partner \u2013 the European Union.\u201d<\/p>\n She added: \u201cI have always been clear about the damage that Brexit did to our economy. Britain\u2019s future is inescapably\u00a0bound with that of Europe, our largest trading partner, with whom we share common interests and common values.<\/p>\n \u201cWe have already made significant progress: participation in Horizon Europe is supporting the development of cutting-edge technology. We are set to rejoin the EU\u2019s Erasmus scheme next year and yesterday the PM announced an agreement on the UK\u2019s participation in the EU\u2019s \u20ac90bn loan to Ukraine which will strengthen our defence links and our defence industrial base.\u201d<\/p>\n She added: \u201cI want to see the next UK-EU summit rescheduled as soon as possible so that we can finalise ambitious agreements on agrifoods, emissions trading, electricity and a Youth Experience Scheme.\u201d<\/p>\n CBI chief executive Rain Newton-Smith<\/strong> said the Chancellor had \u201cstruck the right tone\u201d by reassuring financial markets, global investors and businesses of the UK\u2019s commitment to investment, innovation and growth.<\/p>\n \u201cThe priority now is to continue the translation of those reforms into practical changes that strengthen the financial services sector and support firms across the wider economy that rely on it.\u00a0<\/p>\n \u201cThe recently announced package to support SMEs was welcome and will help more businesses to scale, export and adopt new technologies here in the UK. That investment should pay dividends by boosting productivity, strengthening local economies and supporting long-term growth.\u00a0<\/p>\n \u201cThe next step is delivery across key reform programmes, including reform of the Financial Ombudsman Service, pensions reform and streamlining the Senior Managers and Certification Regime.<\/p>\n \u201cThe key measure of success will be whether these changes can unlock further domestic investment, help ambitious firms to scale and grow, deepen UK capital markets and make regulation clearer, faster and more predictable.\u201d<\/p>\n Kate Shoesmith, policy director at the British Chambers of Commerce<\/strong>, said:\u00a0\u201cThere were clear\u00a0themes\u00a0in tonight\u2019s speech by the Chancellor that businesses will\u00a0hope\u00a0are\u00a0carried\u00a0on\u00a0by Andy Burnham\u2019s new administration.\u00a0<\/p>\n \u201cOver the last two years, the\u00a0Chancellor\u00a0has\u00a0supported\u00a0important steps in the right direction.\u00a0Her\u00a0clear ambition to build a closer trading relationship with the EU\u00a0is also something that will resonate with many firms. <\/p>\n \u201cReducing barriers with our largest trading partner\u00a0can\u00a0lower costs, boost export\u00a0opportunities\u00a0and support growth for firms of all sizes.\u00a0<\/p>\n \u201cThe commitment to further devolution is also encouraging.\u00a0Business\u00a0leaders\u00a0on the ground\u00a0understand the strengths and challenges of their\u00a0local\u00a0economies,\u00a0so\u00a0any transfer of powers must be accompanied by meaningful engagement with the Chamber Network.<\/p>\n \u201cIt\u00a0remains\u00a0rooted in communities and connected to\u00a0firms\u00a0in every region and nation.\u00a0\u201c<\/p>\n \t <\/div>\n![\"Rachel](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2024\/07\/Rachel-Reeves-delivering-spending-statement-290724.png\")
![\"Rachel](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/07\/Rachel-Reeves-at-AI-summit-Treasury-june-2026.png\")