What happened Chancellor Rachel Reeves has used her speech at Labour’s annual conference in Liverpool to signal that tax rises may be coming in November’s Budget, warning that global pressures and long-term economic damage have made fiscal decisions more difficult.
Who said what Reeves argued that “the world has changed”, citing conflicts abroad, US tariffs and higher borrowing costs. She attacked Liz Truss for sending mortgages “spiralling” and criticised voices within Labour calling for looser spending, declaring: “They are wrong – dangerously so.”
Having set out a “shopping list of investments to warm the hearts of Labour supporters”, Reeves went on to make an “unapologetic defence of her fiscal rules”, said The Guardian’s economics editor Heather Stewart.
“Never let anyone tell you that there’s no difference between a Labour government and a Conservative government,” said Reeves. Presented with a choice between “invest or decline”, she said, “we chose investment”.
What next? Reeves also used the speech to outline several new initiatives, including libraries in every primary school, a new unit to recover Covid fraud funds, legislation to boost British-made ships and steel, and renewed backing for Northern Powerhouse Rail. |