Pension savers bombshell as Rachel Reeves makes pledge in landmark speech

Labour's new Chancellor Rachel Reeves dropped a pensions bombshell as she made her first speech on the economy.

Ms Reeves said she had met the Governor of the Bank of England on Friday, and said she would be not "playing games" at the expense of financial institutions.

The Chancellor committed to the Labour campaign pledges of "no increases to National Insurance, and the basic higher and additional rates of income tax, or VAT".

Speaking about pensions Ms Reeves said: "We will turn our attention to the pensions system to drive investment in homegrown British business and to deliver greater returns to pensions savers."

She added the Government will make the "tough" and "hard choices" to fix the UK's economy.

She said: "The question is not whether we want growth, but how strong is our resolve? How prepared are we to make the hard choices and face down the vested interests? How willing, even, to risk short-term political pain to fix Britain's foundations?

"The story of the last 14 years has been a refusal to confront the tough and the responsible decisions that are demanded. This Government will be different and there is no time to waste."

Ms Reeves said Labour would "grasp the nettle of planning reform" and that work was already underway to change the current system and that "Britain was a place to do business".

She added she had "met with the Prime Minister and the Deputy Prime Minister to agree the urgent action" and in just "72 hours" changes were being made.

The Chancellor also pledged to make "Britain a place to do business" as she said Labour will not use their large majority to renege on their tax promises.

She said: "Over the weekend, I made clear to Treasury officials that the manifesto commitments that we were elected on will be kept safe and they will be delivered on. That includes robust fiscal rules and it includes our commitments to no increases in national insurance and the basic higher or additional rates of income tax or VAT.

"Now I know that there are some who will argue that the time for caution has passed. Who hold that the platform on which we were elected, the platform that the British people voted for last week, can now be simply forgotten. That we can toss aside those fiscal rules or renege on our tax pledges as a large majority in Parliament means we have the licence to roll back on the principles of sound money and economic responsibility.

"I know that many of you aren't used to hearing this after recent years, but I believe that the promises that a party is elected on should be delivered on in Government and we will do so."

She added: "To investors and businesses who spent 14 years doubting whether Britain is a safe place to invest. Then let me tell you, after 14 years, Britain has a stable Government. A Government that respects business, wants to partner with business and is open for business. In an uncertain world, Britain is a place to do business."

Ms Reeves saying she will make kickstarting economic growth a "national mission" with major changes to speed up infrastructure projects and unlock private investment, chimes in the with party manifesto released during the election campaign.

Sir Keir Starmer's administration has made faster economic growth, and the tax revenues that would flow from it, a key plank of its strategy to fund public services which are struggling for cash.

The Labour manifesto committed to wholesale planning reforms to make it easier to build and a greater focus on driving through key infrastructure projects which have become mired in delays and boost housebuilding.

The manifesto pledged to "immediately" update the National Policy Planning Framework to undo changes made by the Conservatives, including restoring

The party also plans to allow building on some greenbelt land, promising to take a "more strategic approach" to "build more homes in the right places".