Rachel Reeves, the UK’s shadow chancellor, has shifted her economic stance in recent weeks, adopting a more business-friendly approach and prioritising growth amid mounting pressure.

Reeves, who previously emphasised higher taxes and increased public spending in her October Budget, is now focused on removing barriers to business, easing planning restrictions, and facilitating large-scale infrastructure projects.

Her recent remarks and upcoming announcements indicate a shift in tone, with potential approvals for new airport runways and reduced welfare provisions.

Sources within the Treasury reveal that shortly after the Budget, Reeves began advocating for a more aggressive push to stimulate economic growth.

This aligns with her and Labour leader Sir Keir Starmer’s longstanding goal to rejuvenate the UK economy.

Behind closed doors, Treasury officials have been encouraged to explore measures to drive business investment and restore confidence in the economic recovery.

This shift comes at a time of economic turbulence, with market instability and concerns over a potential ‘doom loop’ for the UK’s financial system.

Several business leaders have expressed increasing nervousness about the country’s economic direction, citing a lack of clear momentum and uncertain market conditions.

One FTSE chief executive noted a decline in confidence, and union leaders highlighted challenges in aligning government spending with growth objectives.

Despite wage growth in certain sectors, the general sentiment among voters remains negative, with many feeling the strain of high living costs.

Inside Number 11, the government has recognised the need for urgent action.

Sources suggest that recent economic jitters have created a renewed sense of urgency, prompting a more focused approach to growth.

Reeves and her colleagues are now under increasing pressure to deliver tangible results that can boost the economy and, in turn, garner public support.

Reeves' proposed measures include changes to planning laws, which could facilitate the construction of major infrastructure projects, including a new runway at Heathrow.

However, this push for deregulation has sparked debate.

Critics argue that the government’s simultaneous emphasis on worker protections and increased regulation in areas like employment and housing creates a contradictory policy stance.

The government’s plans for state intervention in green energy and AI innovation further complicate this narrative.

While the government’s actions may not align with a singular economic philosophy, they reflect a broader struggle to balance fiscal responsibility with the need for growth.

The UK's national debt remains high, taxes are steep, and overall growth remains sluggish.

Ministers have suggested that improvements in wage growth and inflation have been underappreciated, but they face the challenge of translating these gains into tangible benefits for the wider population.

Reeves' upcoming speech is expected to reflect this shift in priorities, presenting a vision of accelerated economic growth, job creation, and revitalised public finances.

However, some critics remain sceptical.

A former Labour minister questioned how quickly the effects of these changes would be felt on the ground, particularly in areas where voters continue to struggle with high rents and living expenses.

As the government scrambles to find solutions, the pressure to deliver on economic growth continues to mount.

Despite the optimism projected by Reeves and her team, the challenges of economic recovery are likely to remain a defining feature of the political landscape in the coming months.