There’s always a fierce debate over what will or won’t make the economy grow.
Growth measures any increase in the size of the economy, which means all the things we buy and sell, whether that’s a haircut or a house.
Every government says it wants to boost growth, and comes up with its own plan. But whether it works depends on a huge range of factors, including what is happening in other countries. And currently growth in the UK is flatlining.
Reeves’ plan is to get things moving by backing big building and transport projects, making it easier to get planning approval, and encouraging more money from firms rather than goverment money.
The effects of growth are never felt evenly, so even if it’s a big success, some will benefit more than others.
For some people it could mean a new job, or higher wages, especially if you work in a sector that is seeing the direct benefit of new investment, for example, construction or AI.
Even if you don’t, there could be a knock-on “domino” effect as the first people to benefit go out and spend more in pubs, shops and elsewhere, boosting earnings for other businesses.
But most of us will only get a sense that the economy is growing when we see cranes towering above a new building site or new shops opening on the High Street.
And although Reeves said she wants to improve living standards across the UK most of the specific projects she announced were in the south of England.
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