British Treasury chief Rachel Reeves has vowed not to resort to public spending cuts despite the challenging state of the U.K.'s national finances. In a speech at the Labour Party's annual conference, Reeves emphasized optimism, reassuring party members that the upcoming budget will not be all doom and gloom.
The Labour Party, which recently secured a significant election victory, is convening in Liverpool to discuss its plans for governance. Prime Minister Keir Starmer's administration aims to address economic concerns and revitalize public services, including the National Health Service.
Reeves affirmed that there will be no return to austerity measures and highlighted the government's commitment to investing in growth, productivity, and family incomes. The party aims to tackle the fiscal challenges left by the previous Conservative government without resorting to income tax, sales tax, or corporation tax hikes.
Measures to address the fiscal deficit include cracking down on tax avoidance and recovering funds lost due to pandemic-related contract fraud. However, controversial decisions such as removing the winter fuel allowance for many retirees have sparked debate and opposition within the party.
Despite recent controversies, Starmer plans to rally party members in his upcoming speech, outlining the government's achievements and future plans. These include ending public-sector strikes, nationalizing railways, establishing a green energy firm, and enhancing rights for workers and renters.
While the Labour Party's mood may be somewhat subdued compared to previous years, it remains more optimistic than the upcoming Conservative conference in Birmingham. The Tories, facing internal challenges and leadership contests following a significant election defeat, are striving to regain political ground.
