Keir Starmer is reportedly planning to prioritise growth over net zero (Image: Getty)
Keir Starmer is planning environmental "trade-offs" to boost UK economic growth following a major government reshuffle, according to reports. The Prime Minister tactically appointed "Blairite" ministers to key positions in his cabinet after Angela Rayner's resignation on Friday and will urge them this week to "step up a gear" in their focus on the economy. Steve Reed, who replaced Ms Rayner as housing secretary, told civil service workers following his appointment, that his mantra in the role would be "build, baby, build", The Times reported.
Mr Reed will also meet developers in the coming days and pledge to launch "one of the biggest eras of building on our countries history", in a move expected to require "trade-offs" on environmental regulations. New business secretary Peter Kyle has similarly his sights on scrapping regulations to drive growth, as part of Labour's aim to cut costs for firms by 25% under its industrial strategy. The shift in focus could widen the divide between environment secretary Ed Miliband, who has repeatedly pushed for a greater government commitment to achieving net-zero, and the rest of the cabinet.
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Housing secretary Steve Reed was among a raft of cabinet appointments made on Friday (Image: Getty)
Mr Starmer and Mr Miliband have already clashed on planning proposals including an application to build the largest data centre in Europe in Teesside, which the energy secretary reportedly opposed due to energy and water consumption concerns.
Sources pointed to the new appointment of Michael Shanks as joint business and energy minister as an indication that the Prime Minister has recognised the "tension" between the two initiatives and made a decision on which will be a priority.
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"There's a tension between net zero and driving growth, so you're drawing them under one portfolio and saying business comes first," one government insider said.
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"Keir has put reformers in key departments to tear down barriers and unleash the economy's potential," another added. "Growth is how we're going to make people better off. That's the priority of this government and what this new team will be getting on with."
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Labour in utter chaos after Angela Rayner resignation - what happens next?
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Andrew Neil makes dire prediction - and it's terrible news for Keir Starmer
Keir Starmer has only one way to save his skin - by getting rid of this man
Keir Starmer in crisis as unions hold him hostage over Angela Rayner plan
Angela Rayner dealt huge blow by Jeremy Corbyn as ex-pal blasts 'enormous mistake'
Angela Rayner's resignation letter in full as ￡40k stamp duty row explodes
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The Prime Minister launched a major cabinet reshuffle after Angela Rayner resigned last week (Image: Getty)
Chancellor Rachel Reeves – who kept her position in Friday's cabinet shake-up – has come under increased pressure in recent months to kick-start the economy and cut an expected ￡20 billion shortfall in the November budget.
However, the Prime Minister's allies have insisted there won't be any changes to the workers' rights package championed by Ms Rayner, despite warnings from businesses that it could limit growth.
Asked about the future of the bill on Sky News, defence secretary John Healey said: "I'm really confident that we'll deliver what we promised in the manifesto, the biggest upgrade of workers' rights for a generation."
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