In her speech at the Labour Party conference in Liverpool, Rachel Reeves will pledge to rebuild Britain with a budget that promises “no return to austerity”. Reeves is under pressure to inject optimism into Labour’s messaging on the economy, following a run of doom and gloom from the Conservatives. However, her decision to axe winter fuel payments for 10 million pensioners is set to become a central issue during the conference, with a vote challenging the move expected on the day of her speech.
Reeves will outline plans for a Covid corruption commissioner, confirming their appointment next month. The commissioner’s task will be to recoup £674 million of disputed contracts the Conservatives agreed to waive. Reeves will also announce measures to target tax dodgers, recruiting 5,000 more taxmen over the next five years. In addition, £39.8bn – the shortfall between the amount of tax owed and actually collected – will be addressed through new measures such as the appointment of 200 new compliance officers at HMRC in November.
Writing in the Times, Reeves states that she has “never been more optimistic about our country’s fortunes”. She warns of the need for stability to avoid a public finances meltdown similar to that caused by Liz Truss. Reeves maintains that Labour will avoid austerity, as stability and reform will create the due conditions for lasting growth. The challenge Labour seeks to tackle is growth, and the solution is investment.
Reeves will seek to assuage the Labour base, which is currently unhappy with her decision to cut winter fuel payments, once a Labour initiative. The party’s leadership team has also come under fire for accepting donations of clothing. Labour MP Rachel Maskell abstained in the vote to support winter fuel plans earlier this month, posting her unhappiness on social media. Deputy Prime Minister Angela Rayner defended her decision to accept clothes and a New York penthouse in an interview with Laura Kuenssberg, arguing that she never violated any rules. Business Secretary Jonathan Reynolds also defended the actions of the party’s leadership team, asserting that no one has done anything wrong.
As Reeves builds momentum towards the budget on 30 October, it remains to be seen whether she can face the challenges posed by both the public and her party base. Despite her ambitious rebuilding agenda, criticisms from Labour MPs over winter fuel cuts continues to cast doubt over her ability to deliver
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