Reeves warns Labour figures against ‘peddling idea’ of ditching fiscal rules

Rachel Reeves told Labour delegates to ‘have faith’ that things will get better despite the difficult economic backdrop. Photograph: James McCauley/Shutterstock

Rachel Reeves has warned Labour figures “peddling the idea” the government could abandon fiscal responsibility to free up more money for public spending were “dangerously wrong” and risked serious damage to the economy.

In her speech to Labour conference, and in what will be widely interpreted as a criticism of Andy Burnham, the Greater Manchester mayor, she urged the party to be “honest” about what calls to borrow more would actually mean.