UK’s Reeves rules out return to ‘suffering’ on more economic message Reuters
By Alistair Smout, Andrew MacAskill and Elizabeth Piper
LIVERPOOL, England (Reuters) – Britain’s finance minister Rachel Reeves dismissed a “return to the doldrums” on Monday, trying to underline the negative mood her party has created since its landslide victory in July’s election.
Labor has been dampening expectations by repeatedly telling Britons that the outgoing Conservatives, who imposed a tough “austerity” plan in the wake of the 2008 financial crisis, have left a yawning gap in the public finances, and hinted at further cuts to come.
Instead, speaking at the party’s annual conference, Reeves painted a picture – long on hope but short on detail – of a Britain rich with investment in manufacturing and services, where work pays decent wages and new generations can thrive.
But he gave no time frame for Britain to see the kind of growth and new jobs he described, and said he would have to take tough decisions such as the much-criticized one to cut pensioners’ winter fuel payments.
Reeves told a packed conference hall in the northern English city of Liverpool: “There is no going back to austerity. Conservative austerity has been the decision to destroy our public services – as well as investment and growth.”
“We have to deal with the Tory (Conservative) legacy and that means tough decisions. But we will not let that dampen our passion for Britain.”
He justified the fuel tax cuts by listing what he said were the previous government’s failures, including a 22 billion ($29 billion) hole in public finances.
“I know that not everyone in this hall or in the country will agree with all the decisions I make. I will not ignore those decisions: not for political reasons, not for personal gain,” he said.
“So believe me when I say: My hope for Britain burns more than ever. My desire has no limit because I see the prize that is offered, if we make the right decisions now,” he added, announcing the launch of free breakfast clubs. primary school children.
His message of hope appears to be aimed at improving morale at a time when the government is under pressure to explain why ministers are accepting clothing donations.
A survey last week showing that consumer confidence has fallen has led to accusations that Reeves and Prime Minister Keir Starmer are damaging the economy with an overly pessimistic outlook.
HARD CHOICES
Reeves said not going back on spending cuts meant that, despite tough decisions, there would be an increase in public spending under Labour.
He also said that the government will not increase income tax, National Insurance payments, value-added tax or business tax.
But he said political stability was essential to attracting business investment to Britain and that, with government debt at 100% of economic output, companies would have to contribute more.
In a sign of the challenges ahead, English National Health Service nurses voted on Monday to reject a government-paid award for 2024/25.
Reeves said the government would try to recoup the money by appointing a COVID corruption commissioner to investigate more than 650 pounds of pandemic contracts awarded by the previous government in what he said were exceptional circumstances.
Critics say it has given deals to friends and favorites, sometimes personal protective equipment that has ended up obsolete.
