I’m a Labour MP – but the government’s ‘growth’ mission reeks of panic | Clive Lewis

3 hours ago 1

Chancellor Rachel Reeves’s recent “big growth agenda” speech wasn’t just the expression of a vision for the economy. It was also a warning shot to wavering Labour MPs. The message was blunt: get on board with the government’s economic strategy or step aside. Growth, we were told, is the non-negotiable mission.

This was not a sudden shift but a reaffirmation of her stance at Davos, where she made clear that “the answer can’t always be no”. That answer, now firmly codified, prioritises GDP growth above all else. Heathrow airport expansion is in; net zero, bats and newts are out. The promise? A revitalised economy, busy high streets and more bobbies on the beat – a Labour-friendly vision of progress designed to bolster morale and stuff leaflets with “good news” ahead of the next election.

This strategy is fraught with risk. Some may call it bold; others, a sign of desperation. A growing suspicion looms that our government lacks a coherent governing philosophy or ideological compass beyond the vague pursuit of “growth”. But if growth at any cost is the mantra, the costs will soon become painfully clear. Why pledge to be clean and green, only to undermine that commitment with a Heathrow expansion promise six months later? Burning the furniture to stay warm doesn’t signal confidence – it reeks of panic.

Regardless of the motivation, Labour has crossed the Rubicon. Approving Heathrow expansion is an irreversible break with our pre-election pledges. In 2021, Reeves stood in front of the Labour party conference and declared that she would be the “first-ever green chancellor”. Now, Labour is accused of obstructing the climate and nature bill and abandoning its ambitious decarbonisation plans. The rapid turnaround is striking.

There is also an international dimension. Has Donald Trump’s resurgence made it easier for Labour to jettison some of its social and environmental commitments? Some may argue that when mass deportations and the dismantling of the state are politically feasible in one of our closest allies, progressives here should be grateful for a Labour government – even one shifting ever rightwards. But the Heathrow expansion and the realignment it signals do not insulate the UK from the political forces that enabled Trump, it accelerates them. Remember our pledge to rebuild trust in politics? Climate U-turns like this do the exact opposite. Indeed, they fuel the very climate scepticism the right peddles. After all, if we genuinely think the climate crisis is an existential threat, why undermine combatting it?

As much as it pains me to say, Heathrow is just the most visible indicator of Labour’s shift. The changes are stacking up. BlackRock’s influence is growing. Austerity and deregulation are back in fashion. Zero tolerance for benefit fraud is in; stricter taxation on non-doms is out. Post-2008 banking regulations are set to be dismantled, while the long-touted climate and nature bill is quietly sidelined.

This raises the fundamental question: whose growth are we talking about? We know that the economic benefits of Heathrow expansion, AI development and financial and planning deregulation will not be evenly distributed. The winners will be the same old symbols of financial capitalism’s excesses – property developers pushing high-rise luxury flats while social housing crumbles; financial institutions such as BlackRock dictating investment priorities that benefit the wealthiest; and corporations such as Amazon, notorious for union-busting and exploitative labour practices, reaping profits from deregulation.

The losers? The very working-class communities that Labour has to champion, who will probably see little of the wealth generated while facing increased job insecurity from AI disruption, unaffordable housing due to continued speculative investment and environmental degradation from unbridled development.

The economic orthodoxy the chancellor is embracing has been tried before. Joe Biden’s Democrats achieved GDP growth but still struggled against Trump’s populism. Why? Because growth, when concentrated in the hands of the few, does not translate into security or prosperity for the many. Starmer understood this implicitly when he stated back in 2022 that trickle-down economics “is a piss take”.

Reeves once championed the foundation economy – lifelong learning, public services, local industries and wealth redistribution. Whatever happened to that vision? Instead of pinning hopes on trickle-down promises from Heathrow and hedge funds, Labour should be levelling up wealth, not just GDP statistics.

That means “growth” that serves people, not just profit. Of course, investing in AI, the life sciences and renewable energy is critical, but so too is sustainable farming, rewilding and well-paid jobs in adult social care – an urgent necessity for an ageing society, yet perpetually sidelined.

The choices Labour is making will define not just its electoral prospects but the political landscape of the UK for years to come. This is not just about Heathrow, banking regulations or benefit fraud crackdowns. It is about whether my party can offer a vision of growth that actually works for the people who need it most – or whether it will leave that space open for its populist opponents to fill.