GovWire

Thank you everyone.

Its fantastic to be here at Siemens at this amazing facility.

Today, I want to talk about economic growth.

Why it matters.

How we achieve it.

And what we are going to do further and faster to deliver it.

Before we came into office

the Prime Minister and I have said loud and clear:

Economic growth is the number one mission of this government.

Without growth, we cannot cut hospital waiting lists or put more police on the streets.

Without growth, we cannot meet our climate goals

or give the next generation the opportunities that they need to thrive.

But most of all

without economic growth

we cannot improve the lives of ordinary working people.

Because growth isnt simply about lines on a graph.

Its about the pounds in peoples pockets.

The vibrancy of our high streets.

And the thriving businesses that create wealth, jobs and new opportunities for us, for our children, and grandchildren.

We will have succeeded in our mission when working people are better off.

I know that the cost of living crisis is still very real for many families across Britain.

The sky high inflation and interest rates of the past few years have left a deep mark

with too many people still making sacrifices to pay the bills and to pay their mortgages.

But we have begun to turn this around.

Everything I see as I travel around the country gives me more belief in Britain.

And more optimism about our future.

Because we as a country have huge potential.

A country of strong communities, with small and local businesses at their heart.

We are at the forefront of some of the most exciting developments in the world

like artificial intelligence and life sciences

with great companies like DeepMind, AstraZeneca, Rolls Royce and of course Siemens

delivering jobs and investment across Britain.

We have fundamental strengths in our history, in our language, and in our legal system to compete in a global economy.

But for too long, that potential has been held back.

For too long, we have accepted low expectations and accepted decline.

We no longer have to do that.

We can do so much better.

Low growth is not our destiny.

But growth will not come without a fight.

Without a government willing to take the right decisions now to change our countrys future for the better.

Thats what our Plan for Change is all about.

That is what drives me as Chancellor.

In my Mais lecture in March last year, I set out my approach to achieving economic growth

and identified the fundamental barriers to realising our full potential.

The productive capacity of the UK economy has become far too weak.

Productivity, the driver of living standards??

has grown more slowly here than in countries like Germany and the US.

The supply side of our economy has suffered due to chronic underinvestment

and stifling and unpredictable regulation

not helped by the shocks we have faced in recent years.

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The strategy that I have consistently set out

is to grow the supply-side of our economy

recognising that first and foremost

it is businesses, investors and entrepreneurs who drive economic growth

a government that systematically removes the barriers that they face one by one and has their back

This strategy has three essential elements:

First, stability in our politics, our public finances and our economy - the basic condition for secure economic growth.

Second, reform - reform which makes it easier for businesses to trade, to raise finance and to build.

And third, investment, the lifeblood of economic growth.

Let me explain each of those in turn.

Stability the first line of our manifesto was a promise to bring stability to the public finances.

It is the rock upon which everything else is built.

And it is the essential foundation of our Plan for Change.

Because economic stability is the precondition for economic growth.

Thats why the first piece of legislation that we passed as a government was the Budget Responsibility Act

so never again will we see our independent forecaster sidelined.

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At my first Budget in October

it was my duty as Chancellor

to fix the foundations of our economy, and repair the public finances that we inherited.

To restore stability and create the conditions for growth and investment.

I set out new fiscal rules which are non-negotiable, and will always be met.

We began to rebuild our NHS and our schools the start of a programme of public service reform.

I capped the rate of corporation tax - and I extended our generous capital allowances for the duration of this parliament - as the CBI and the BCC have long called for.

And I protected working people after a cost of living crisis

by freezing fuel duty

and with no increases in their National Insurance, Income Tax or VAT.

But taking the right decisions and the responsible decisions does not always mean taking the easy decisions.

The increase in Employers National Insurance contributions has consequences on business and beyond.

I said that up front in my Budget speech.

I accept that there are costs to responsibility.

But the costs of irresponsibility would have been far higher.

Those who oppose my Budget know that too.

That is why, since October, I have seen no alternative put forward [redacted political content].

No alternatives to deal with the challenges we face.

No alternatives to restoring economic stability

and therefore no plan for driving economic growth.

Alongside stability, we need to drive forward the reform which makes investment more likely

by removing the constraints on the supply side of our economy

making it easier for businesses to trade

to raise finance

and to build.

Let me first address our approach to trade.

We stand at a moment of global change.

In that context, we should be guided by one clear principle above all.

To act in the national interest

for our economy

for our businesses

and for the British people.

That means building on our special relationship with the United States under President Trump.

The Prime Minister discussed the vital importance of growth with the President last weekend

and I look forward to working with the new Treasury Secretary, Scott Bessent

to deepen our economic relationship in the months and the years ahead.

Acting in our national interest also means resetting our relationship with the EU our nearest and our largest trading partner to drive growth and support business.

We are pragmatic about the challenges that we have inherited from the last governments failed Brexit deal.

But we are also ambitious in our goals.

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we will prioritise proposals that are consistent with our manifesto commitments

and which contribute to British growth and British prosperity

because that is what the national interest demands.

Our approach to trade also means building stronger relationships with fast-growing economies all around the world.

That is why I led a delegation to China for the first Economic and Financial Dialogue since 2019

alongside world-leading financial service businesses, including HSBC, Standard Chartered and Schroders

unlocking 600 million of tangible benefits for the UK economy.

And I am pleased to confirm that the Business and Trade Secretary will shortly visit India

to restart talks on the free trade agreement and bilateral investment treaty [redacted political content].

Our businesses can only realise these opportunities if they can recruit the skilled staff that they need.

So we are reforming our employment system to create a national jobs and careers service.

We have created Skills England to meet the skills of the next decade in sectors like construction and engineering.

And we will deliver fundamental reform of our welfare system.

That includes looking at areas that have been ducked for too long

like the rising cost of health and disability benefits

and the Secretary of State for Work and Pensions will set out our plans to address this ahead of the Spring Statement.

Next, the Immigration White Paper, that will bring forward concrete proposals to bring the overall levels of net migration down.

But we know that the UK is in an international competition for talent in vital growth sectors.

That is why last week, I set out plans for attracting global talent.

We will look at the visa routes for very highly skilled people

so the best people in the world choose the UK to live, work and create wealth

bringing jobs and investment to Britain.

To help businesses access the finance and support they need to grow

we hav

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