In her first major speech as Britain's new Chancellor of the Exchequer, Rachel Reeves unveiled a series of measures aimed at reviving the country's stagnant economic growth and addressing the housing shortage. Reeves, the first female to hold the position, expressed concern over the challenging circumstances inherited from the previous Conservative administration, stating that decisive reform is urgently needed.

Reeves, a former economist at the Bank of England, stressed the importance of economic growth as a top priority and a "national mission." However, she acknowledged that the current circumstances pose significant hurdles, comparing them to the challenges faced after the Second World War.

The new Finance Minister highlighted the urgent need for reform in the planning system, emphasizing that nowhere is it more crucial than in addressing the housing crisis. Reeves announced plans to revamp the national planning policy framework, with a focus on promoting growth. She also pledged to restore mandatory housing targets and put an end to the ban on new onshore wind farms in England.

Housebuilding emerged as a key priority for the Labour government, which aims to streamline the housing supply process and tackle rising real estate prices. According to official figures, under the previous Conservative administration, only 212,570 new homes were completed last year. The Labour party has committed to building 1.5 million new homes, aiming for an ambitious target of 300,000 homes per year.

The announcement of these housing reforms has already shown a positive impact on the market, with shares of housebuilders rising in anticipation of renewed momentum. Yet, some experts warn that housing reform is a complex issue, involving both national and local challenges, which could face resistance from various stakeholders.

Reeves's speech comes as Britain recovers from a shallow recession and navigates through the economic uncertainties resulting from Brexit, the COVID-19 pandemic, and international geopolitical tensions. The finance chief highlighted the importance of making Britain an attractive investment destination and pledged to restore confidence in the country's economic potential.

In terms of economic projections, the Office for Budget Responsibility expects a modest GDP growth of 0.8% in 2022, followed by a 1.9% expansion in 2025. However, the International Monetary Fund paints a more pessimistic picture, forecasting a weaker growth rate of 0.5% for this year.

Reeves's primary mission as Chancellor of the Exchequer is to achieve sustained and robust economic growth, while prioritizing job creation and productivity across the country. The Labour government's manifesto includes plans to generate "wealth creation" and raise billions of pounds through closing tax loopholes to fund public services. Additionally, a National Wealth Fund worth £7.3 billion is proposed to support industries such as steel, automotives, carbon capture technology, and gigafactories.

Reeves confirmed that the Bank of England's reserves and interest accrual policies will remain unchanged for now, maintaining stability in monetary policies.

As she takes the reins of the country's economic agenda, Rachel Reeves faces significant challenges in revitalizing the economy, addressing housing shortages, and attracting investments. The success of her reforms and policies will be closely watched as Britain strives to regain its economic footing and forge a path to sustainable growth.