PROPERTY developers and Tory think tanks welcomed new Chancellor Rachel Reeves’ commitment today to grow the economy through planning reforms.

And environmental campaigners backed her announcement scrapping the ban on onshore wind farms.

In her first major speech as Chancellor, Ms Reeves pledged to “fix the foundations” of the economy while complaining, predictably but not untruthfully, that she had been handed a mess by the outgoing Tories.

She announced that Labour will restore mandatory housing targets for local authorities, introduced and then scrapped by the Tories, in order to hit the target of building 300,000 new homes a year, something not achieved for decades.

Ms Reeves made it clear that the government is not going to build anything itself.

“We need the private sector to build homes,” she said. 

“We’re not going to be in the business of building those homes directly.”

Private house builders rejoiced. David Thomas, chief executive at Barratt, said: “It is vital that local and central government are united with industry to deliver high-quality new homes and developments across the country.”

And top law firm Kingsley Napley said that “today’s announcement by Rachel Reeves will be very welcome to our developer clients.”

Tory think tank Centre for Policy Studies also backed Ms Reeve’s approach. Director Robert Colville said: “We welcome the new Chancellor’s recognition that attracting private-sector investment should be at the heart of Britain’s economic strategy — which is why we urge her not to undermine her own efforts by raising taxes on businesses.”

And the Adam Smith Institute welcomed “the Chancellor’s plans to introduce supply side reforms.”

The more left-wing New Economics Foundation, on the other hand, said: “If we want to see decent growth again, our new government can’t be afraid to spend.”

The government is also to review greenbelt boundaries limiting development around major cities, ensure decisions on large projects are taken at national rather than local level and recruit 300 new planning officers.

“We have done more to unblock the planning system in the past 72 hours than the last government did in 14 years,” the Chancellor boasted.

“As of today, we are ending the absurd ban on new onshore wind in England.”

Friends of the Earth research head Mike Childs said: “By ending the onshore wind ban in England, Labour is making an important stride towards delivering on our climate goals, while also paving the way for lower bills.”

Labour Campaign for Council Housing said: “The private speculators will not resolve the housing crisis by being given the green light to make even more money than they have. Social rent homes are the key, council housing in particular. Give councils the funding to build council homes.”