The UK Prime Minister’s recent comments about an impending “painful budget” had sparked concerns around the nation regarding where next the axe would fall, budget-wise. However, Chancellor of the Exchequer, Rachel Reeves, took a more optimistic tone when speaking to the Labour Party conference. She focused instead on restoring “stability”, with a promise of the long-term gain that would come with it, rather than a continued focus on austerity. Speaking to conference-goers in Liverpool, Reeves made it clear she “burns brighter than ever” with optimism for the UK’s future.
Some have raised concerns that, following a series of rolling inflationary crises, consumers may not yet be ready for more tax hikes or cuts. With consumer confidence at an all-time low, retailers have been spooked by disappointing sales triggered by talk of more austerity. Reeves has responded with a promise that future tax hikes will not be aimed primarily at hard-pressed working families.
Reeves went on to discuss investment spending, particularly in infrastructure. Plans inherited from previous government administrations show a decrease in the amount of the economy devoted to public investment. However, Reeves argued that “growth is the challenge… and investment is the solution.” She stated that changes to the rules surrounding government borrowing would be announced shortly, allowing for more investment in the economy. This move will likely work alongside the new Industrial Strategy set to be released with the Budget on 30 October, with both devices intended to attract significant foreign investment.
Finally, Reeves mentioned Liz Truss’s mini-budget, now two years old, and its original fiscal plans. Speaking in direct contrast to Truss, Reeves appeared to agree that cuts to spending were necessary for growth and that tough decisions needed to be made at budget time. Overall, Reeves’s message was one of hope and positivity for the future wellbeing of the British economy
Read the full article from The BBC here: Read More
