British finance minister Rachel Reeves spelled out her plans to revive the country’s slow-moving economy on Wednesday, adding to recent pledges to reform investment and planning rules with a commitment to back airport expansion at Heathrow.
Below are the key actions the government has announced to remove hurdles to growth since taking power last July:
PLANNING The government plans to limit the number of legal challenges that opponents can bring to slow major infrastructure projects.
At present, even legal challenges deemed to have little chance of success can be brought back to the courts three separate times. New rules are designed to ensure that in the weakest cases only one such challenge can be made.
The current first attempt – known as the paper permission stage – will also be scrapped.
HEATHROW RUNWAY EXPANSION On Wednesday Reeves gave her backing for the construction of a third runway at London’s Heathrow Airport.
Successive governments have dithered about expansion of the site in west London, with politicians caught between the need to build more capacity and concerns about pollution and carbon emissions.
Reeves said she wanted permission granted by the end of this parliament, which is due to end in 2029. The head of Heathrow, Thomas Woldbye, said it could be operational by 2035.
OXFORD-CAMBRIDGE CORRIDOR The government will further support the “growth corridor” that exists between the university cities of Oxford and Cambridge by working with industry and local government to speed up the building of homes, laboratories and transport networks, including a direct train line.
The area, which is home to fast-growing companies spun out of the universities and to industry leaders such as AstraZeneca, could add up to 78 billion pounds ($96.8 billion) to the overall economy by 2035 if plans are implemented, industry experts say.
PENSION REFORMS New pension reforms are set to allow the release of what the government calls “trapped” corporate pension surpluses – estimated to be worth more than 100 billion pounds – to be invested in the wider economy.
The government has said legislative changes could enable all defined benefit pension schemes to change their rules to permit the use of such funds where there is trustee-employer agreement.
Reeves also wants to build a slew of “megafunds,” with plans to consolidate about 60 defined contribution pension schemes and 86 Local Government Pension Schemes to make them more cost-efficient and large enough to bankroll ambitious projects.
INVESTMENT Reeves has said the National Wealth Fund and the Office for Investment will work with local leaders to drive regional economic growth by focusing on sectors such as technology, manufacturing and green energy.
HOUSING The government said there would be new mandatory housing targets, including building more homes where housing is least affordable. Local authorities have been tasked with coming up with timetables for new housebuilding plans or else risk intervention from ministers. The measures are part of the government’s efforts to meet a pledge to build 1.5 million new homes in the next five years, including ordering local authorities to build more houses.
REGULATORY RESET The government has urged the country’s regulators, including competition, energy and water, to remove barriers to economic growth, asking them to create a regulatory environment that boosts investment and innovation.
Reeves forced out the chairman of the country’s competition watchdog last week, saying he did not agree with her views on how to speed up Britain’s economy.
FINANCIAL REFORMS Earlier this month, the Bank of England (BoE) delayed the implementation of tougher bank capital rules by a year to January 2027 in order to gain clarity on what the United States will do under Donald Trump as president.
In October, the BoE proposed moving to a five-year bonus deferral period for all senior managers, down from the eight years some face, relaxing rules that were put in place after the global financial crisis.
Britain’s Financial Conduct Authority in December outlined proposals for a new platform to enable trading in shares of privately-owned firms to help the country’s lacklustre capital markets and encourage new IPOs.
The BoE is also planning to lower its proposed capital requirements for lending to small and medium-sized businesses.
In 2023, the previous Conservative government scrapped a decade-old cap on banker bonuses.
There are going to be quite a few contenders for the ‘best year ever’ winner in the shopping centre category. Entering the field is Caledonia Park, Scotland, with the premium designer outlet village’s owner/operator Railpen saying it experienced a “record-breaking year for sales and performance” in 2024.
The path to success was helped by the destination introducing seven new brands and securing a series of long-term renewals, “demonstrating the success of [our] strategic asset management”.
Surpassing 2023 levels, footfall rose 8%, “underlining the impact of its targeted leasing strategy tailored to evolving consumer demands” and standout categories included Health and Beauty, which saw a “staggering sales growth of 26%”. It said this was bolstered by the continued success of Rituals.
Also, the Black Friday weekend was “particularly successful” with a 19.1% uplift in sales vs the same period last year.
Last year’s key arrivals included Ben Sherman, which opened its first outlet location in Scotland there at the end of last year, taking a 1,500 sq ft space adjacent to fellow Scottish outlet debutant Moss, which recently opened its refurbished store, and kate spade new york.
The venue’s “targeted and considered leasing strategy” also resulted in several lease renewals for long-standing tenants, including Polo Ralph Lauren, who has now committed to another five years at the destination, as well as Berghaus, and Levi’s, “signifying appeal for both brands and visitors across the country”.
Maria Averkina, asset & development manager at Railpen, said: “2024 has been a standout year for us as we remain strong in our position as the go-to place for outlet debuts in Scotland.
“[The] record footfall and sales, [puts] us on a positive trajectory as we kick off 2025, and our portfolio of brands is continuing to excel, catering to our visitors tastes. Our focus will remain on supporting existing tenants as well as attracting new ones, with several discussions already under way with leading retailers.”
American lifestyle and accessories brand Cole Haan announced on Thursday the opening of its third New York City location.
Cole Haan opens third New York City store in the Flatiron District. – Cole Haan
Located at the corner of 5th Avenue and 19th Street in the historic Flatiron District, the 1,622-square-foot store offers an immersive shopping experience for customers to explore Cole Haan’s diverse collections across lifestyle, sport, and dress categories.
Housed within a 1904 neo-Renaissance landmark building, the new store boasts floor-to-ceiling windows that flood the space in natural light. Design elements, including herringbone wood flooring, mosaic tiles, aged iron chandeliers, and custom-built shelving, create an inviting atmosphere that bridges the brand’s heritage with its forward-thinking approach. Completing the space is artwork throughout the store including macro photography of the iconic Flatiron Building.
“New York has long been a key and successful market for Cole Haan, and we’re excited to open a new store in this vibrant city in the iconic Flatiron District,” said Jack Boys, CEO of Cole Haan.
“This next step in our brand and retail journey offers a unique opportunity to engage with both long-time and new customers allowing us to share our most innovative products and classic designs in one of the world’s most inspiring neighborhoods.”
The store opens with Cole Haan’s Spring 2025 collection. Customers will find new products in Men’s including the OriginalGrand Energyweave Oxfords, alongside best-selling styles. In women’s, new styles include the Georgie Ballet and Graclyn MaryJane Ballet Flats, as well as the Carolyn Foldover Tote in the handbag category.
Cole Haan currently operates over 500 stores in nearly 100 countries worldwide.
Five years down the line, how’s Brexit been for British fashion retail sales? Pretty much a disaster, according to the updated ‘Brexit to Breakthrough – Market Expansion for UK Brands’ report by Retail Economics and software company Tradebyte.
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British retail sales to the European Union have not only dropped by a staggering £5.9 billion since Brexit, clothing exports have been hit the hardest, falling by over 60% from £7.4 billion in 2019 to £2.7 billion in 2023.
Apparel has been supplanted by Health and Beauty (plus electricals, DIY and gardening) becoming the top exporters in non-food retail, now making up three-quarters of UK retail exports to the EU.
Meanwhile, the value of non-food retail exports has fallen by almost 18% since 2019, despite hefty inflation softening the decline, the report notes.
Additional trade frictions caused by Brexit-related complexities such as increased logistics costs, customs complexities, and regulatory hurdles, “are curtailing international online retail opportunities for UK-based brands and retailers (worth an estimated £322.6 bn to EU economies)”, it also said.
Any good news? Despite these setbacks, online marketplaces have emerged as vital platforms for UK brands to regain ground in the lucrative European e-commerce market. Online marketplaces now account for at least £133bn (40%) of EU e-commerce.
“Five years after Brexit, UK retailers are still navigating its long-term effects, particularly when it comes to trading with EU consumers. Many have experienced a significant drop in trade flows, making it harder to maintain connections with key European markets,” said Richard Lim, CEO, Retail Economics.
“For brands looking to expand internationally, digital marketplaces have become an essential lifeline, providing a practical route to reach global audiences while overcoming complex trade barriers. By embracing these platforms, retailers can mitigate some of the challenges posed by Brexit and refocus on growth opportunities in an increasingly competitive global market.”
Alexander Otto, head of corporate relations at Tradebyte, added: ”Brexit has transformed the UK retail landscape, creating significant obstacles for UK brands and retailers aiming to expand in Europe, and making it far harder for them to tap into the flourishing EU e-commerce market.
”Online marketplaces now represent a platform for innovation and a scalable, low-risk path to reach affluent and younger EU consumers across a range of markets. They have emerged as crucial platforms to offset the challenges of Brexit and offer vital growth drivers in a competitive global market.”
Entertainment8 years ago