Rachel Reeves tells MPs the ‘immense prize’ of boosting progress forward of main speech

Boosting the UK’s sluggish growth could mean cranes in the sky and revitalised high streets, Rachel Reeves has told Labour MPs.

In an attempt to strike a more upbeat tone after months of gloomy economic warnings, the Chancellor said: “If we get this right – and I know we will – the prize could be immense”.

She added: “Cranes in the sky. High streets revitalised. The next generation with more opportunities than the past. The sounds and the sights of the future arriving. Wealth created, and wealth shared, in every part of Britain. Now is the chance for us to shout about that potential and the brighter future ahead. Because no one else is going to do it.”

Her comments came ahead of a major speech on Wednesday setting out her fight to drive up growth and turn around the country’s sluggish economy.

Ms Reeves is also expected to weigh into the long-running political saga over a third runway at Heathrow when she delivers her speech. A number of cabinet ministers who have voted against Heathrow expansion in the past – like Energy Secretary Ed Miliband – have previously been vocal against the move.

Appearing to make reference to the scheme, Ms Reeves told the Parliamentary Labour Party (PLP) last night: “There are always reasons for Government to say ‘no’.

“Over the past six months as Chancellor, my experience is that Government has become used to saying ‘no’. That must change. We must start saying ‘yes.’

She added: “Yes, to new jobs. Yes, to higher living standards. Yes, to investment. And yes, to growth.”

Mr Miliband told MPs on the Environment Committee on Monday any decision about airport expansion “must be justified within carbon budgets and if it can’t be justified it won’t go ahead”. The carbon budget places legal restrictions on the total amount of greenhouse gases the UK can emit.

Ms Reeves also told Labour MPs the government must now go “further and faster”, adding: “I do not believe low growth is our destiny”.

She said: “The cost of living pressures are still very real for working people across Britain. And the only way we can turn this around is through economic growth. Economic growth built on the platform of stability, investment and reform. That’s what my speech on Wednesday will be about.”

The Chancellor added: “Will that growth come easy? No. There are no easy routes out.”

It came as No10 failed to deny reports that plans to hike defence spending to 2.5% of GDP could be pushed until after the general election. It could put the UK on a collision course with Donald Trump who has demanded NATO allies pour cash into defence.

Keir Starmer did not discuss these demands with Mr Trump when they spoke on Sunday, No10 said.