Rachel Reeves was accused of 'silencing' local opposition today after she vowed a dramatic overhaul of the 'timid' planning system to stop housing developments being blocked.
In her first major speech, the Chancellor put reforms at the heart of a drive for growth, with parts of the green belt opened up for building.
Local people will be stripped of powers to object to onshore windfarms as decisions are to be taken at national level, and Ms Reeves said she wanted to unblock the process for other major projects.
That could allow for the installation of hundreds of miles of new electricity pylons needed to link up wind and solar farms to the grid.
Before MPs break for the summer, councils will be issued with mandatory targets to clear the way for hundreds of thousands of new homes. Labour has committed to building 1.5million by the end of this Parliament.
Speaking at the Treasury, Ms Reeves 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.'
The move was hailed by the renewables industry and climate change campaigners.
But Tories said Ms Reeves' proposals meant 'building on fields', condemning ministers for taking 'top-down decisions that impact the countryside from offices in Whitehall'.
Shadow environment secretary Steve Barclay said: 'It has taken just days in office for Labour to show what we have said all along - they neither understand nor care for rural people.
'Onshore wind is an important part of our energy mix, but removing protections to allow developers to ride roughshod over the concerns of rural communities isn't the way to go.'
In other early moves from the new government today:
- Keir Starmer is visiting Northern Ireland, and will head to Wales later as well as posing for a photograph with his new MPs;
- More than 330 MPs who have never served in Parliament before are descending on Westminster as the Commons prepares to reconvene tomorrow;
- Tory recriminations are gathering pace in the wake of the extraordinary election meltdown last week.
In her first major speech, Chancellor Rachel Reeves will put her faith in a dramatic overhaul of the planning system to boost economic growth
A slew of Cabinet ministers were on hand at the Treasury to watch Ms Reeves' speech today
Vowing to take the 'difficult decisions' needed to boost economic growth, the new Chancellor will use her first major speech to reveal that the Government is beginning its assault on the planning rules (Stock Image)
Ms Reeves is embraced by business secretary Jon Reynolds after her speech today
Tories said Ms Reeves' proposals meant 'building on fields', condemning ministers for taking 'top-down decisions that impact the countryside from offices in Whitehall'
How Labour is declaring war on Britain's planning system?
Update the National Policy Planning Framework
In their general election manifesto, Labour vowed to update the National Policy Planning Framework (NPPF).
This is a 78-page document that sets out planning policies for England and how these should be applied.
Labour promised to undo 'damaging' Tory changes to the NPPF.
A draft updated document is expected to be published before Parliament rises for recess in August.
Restore mandatory housebuilding targets
Among their changes to the NPPF, Labour pledged to reverse the scrapping of mandatory local housebuilding targets for councils.
These were junked by the Tories in 2022, shortly after Rishi Sunak became PM, after dozens of Conservative MPs threatened a rebellion.
End the ban on new onshore wind turbines
Labour has promised to double the amount of onshore wind power as it seeks to decarbonise the UK's electricity grid by 2030.
They are set to end the de facto ban on new onshore wind turbines, which was introduced by ex-PM David Cameron in 2015 through a tightening of planning rules.
The Tories made some changes to the NPPF last year to ease the effective ban, but Labour are expected to go further in their updated document.
New orders for councils to favour building
In their manifesto, Labour vowed to take 'tough action' to ensure councils have up-to-date Local Plans.
They also said they would strengthen the presumption in favour of sustainable development.
Labour also said they would 'not be afraid to make full use of intervention powers' to overrule local authorities in their bid to boost housebuilding.
300 more planning officers
As part of their promise to build 1.5million new homes over the next five years, Labour promised to supply councils with more funding for extra planning officers.
This will be funded by increasing the rate of the Stamp Duty surcharge paid by non-UK residents.
It was recently reported that Labour's recruitment drived will see 300 more planning officers.
More building on the green belt
Labour promised to pursue a 'brownfield first approach' to building new homes.
But, in their manifesto, they warned this alone would not be enough.
They vowed to take a 'more strategic approach' to the designation of green belt land.
Labour are set to rebrand some land as 'grey belt' land, which they described as 'lower quality'.
These are likely to be areas where there old car parks or wastelands, and some green spaces with 'little intrinsic beauty or character'.
Ms Reeves set the stage for Labour's big push on planning by admitting that the public finances are so stretched that boosting growth is the 'only route to improving the prosperity of our country'.
The landslide election win has given Labour a 'mandate' for radical change, she argued.
'I have repeatedly warned that whoever won the General Election would inherit the worst set of circumstances since the Second World War. What I have seen in the past 72 hours has only confirmed that,' she said.
'Our economy has been held back by decisions deferred and decisions ducked. Political self interest put ahead of the national interest. A government that put party first and country second.
'We face the legacy of 14 years of chaos and economic irresponsibility. That is why over the weekend I instructed Treasury officials to provide an assessment of our spending inheritance so that I can understand the full scale of the challenge and I will present this to Parliament before the summer recess.
'This will be separate from a budget that will be held later this year and I will confirm the date of that budget alongside a forecast from the Office for Budget Responsibility in due course.'
Ms Reeves insisted that planning reform is among the 'first steps' needed to 'fix the foundations of our economy, so we can rebuild Britain'.
'Our manifesto was clear: Sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people,' she said.
'Where governments have been unwilling to take the difficult decisions to deliver growth – or have waited too long to act – I will deliver.
'It is now a national mission. There is no time to waste.'
But Tory Droitwich MP Nigel Huddlestone said: 'Rachel Reeves announced Labour's changes to planning and housing - and name-checked a proposed site at Worcestershire Parkway within my Droitwich and Evesham constituency.
'During the election campaign I expressed grave concerns about Labour's instincts to make top-down decisions that impact the countryside from offices in Whitehall.
'The local voice should not be ignored. While we all know we need more housing, it has to be in the right place, on the right scale and with appropriate supporting infrastructure.
'Let's also be clear we are talking about building on fields, not previously developed land or brownfield sites here, too.'
Ms Reeves was appointed as Britain's first female Chancellor on Friday, and warned that there was 'not much money around'.
However, left-wing MPs and union leaders are already pushing for Sir Keir and Ms Reeves to turn on the spending taps.
Unite boss Sharon Graham said there was scope for the Government to borrow tens of billions of pounds to 'invest' in the economy and public services.
She urged Ms Reeves to scrap Labour's tight fiscal rules and pour billions into Britain's 'crumbling public services'.
'We are going to have to borrow to invest,' she told the BBC's Sunday with Laura Kuenssberg. 'We have not got time to wait for growth.
'People are literally hurting out there and we are going to have to borrow to invest – our crumbling public services need money.'
However, Ms Reeves insisted today that she will not 'throw caution to the winds' and ditch fiscal rules to borrow more.
Touring broadcast studios ahead of Ms Reeves' appearance this morning, Treasury chief secretary Darren Jones said that stimulating 'strength and growth' in the economy is Labour's 'first and most important mission'.
He tried to play down concerns that local communities will be 'excluded' from decisions on housing projects, saying the idea was just to remove 'inertia'.
Greater Manchester mayor Andy Burnham has also called for a 'decisive break with austerity'.
Sir Keir yesterday began a whistle-stop tour of the UK with a visit to Scotland, where he promised an 'immediate reset' of relations with the devolved administrations.
Tomorrow he will travel to the Nato summit in Washington where he will seek to reassure leaders that his Government can be trusted on defence despite ditching Rishi Sunak's pledge to raise military spending to 2.5 per cent of GDP by the end of the decade.
Labour's decision to target the planning system immediately is likely to bring it into conflict with both countryside campaigners and those communities that feel they are already at the limit of development their area can take.
It could also trigger a backlash from some of its own MPs who represent a swathe of constituencies across southern England where planning reform has been resisted for years.
During the election campaign, one Labour official said the party was prepared to 'flatten the whole green belt'. This was denied by Labour.
Ben Houchen, Tory mayor of Tees Valley, said promising rapid growth on the back of planning reform could become 'a noose around the Labour Party's neck'.
He added: 'How keen are the Labour Government to tinker with environmental regulations which is one of the largest delays in the planning system?'
Mr Reeves walks through the Treasury as she prepared to deliver her speech today
The union boss warned that new Prime Minister Sir Keir Starmer 'won't have a lot of honeymoon period' unless he delivers quickly
Touring broadcast studios ahead of Ms Reeves' appearance this morning, Treasury chief secretary Darren Jones said that stimulating 'strength and growth' in the economy is Labour's 'first and most important mission'