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| Rachel Reeves warns of harder choices to come as she hints at tax rises | Rachel Reeves warns of harder choices to come as she hints at tax rises |
| (about 7 hours later) | |
| Reeves: I will take no risk on public finances | Reeves: I will take no risk on public finances |
| Rachel Reeves has said the government is facing difficult choices, as she promised she would not take risks with the public finances. | Rachel Reeves has said the government is facing difficult choices, as she promised she would not take risks with the public finances. |
| In her speech at Labour's annual party conference in Liverpool, the chancellor pledged to keep "taxes, inflation and interest rates as low as possible". | In her speech at Labour's annual party conference in Liverpool, the chancellor pledged to keep "taxes, inflation and interest rates as low as possible". |
| But hinting at further tax rises in November's Budget, she said the government's choices had been made "harder" by international events and the "long-term damage" done to the economy. | But hinting at further tax rises in November's Budget, she said the government's choices had been made "harder" by international events and the "long-term damage" done to the economy. |
| Reeves is facing a difficult Budget, with economists warning tax rises or spending cuts will be needed for the chancellor to meet her self-imposed borrowing rules. | Reeves is facing a difficult Budget, with economists warning tax rises or spending cuts will be needed for the chancellor to meet her self-imposed borrowing rules. |
| Pressed over whether she would have to put up taxes in a BBC interview ahead of her speech, Reeves said "the world has changed" in the last year - pointing to wars in Europe and the Middle East, US tariffs and the global cost of borrowing. | Pressed over whether she would have to put up taxes in a BBC interview ahead of her speech, Reeves said "the world has changed" in the last year - pointing to wars in Europe and the Middle East, US tariffs and the global cost of borrowing. |
| "We're not immune to any of those things," she added. | "We're not immune to any of those things," she added. |
| If taxes do go up in the Budget, this prepares the ground for the government's argument for why this is necessary. | If taxes do go up in the Budget, this prepares the ground for the government's argument for why this is necessary. |
| Reeves criticised previous Conservative governments, accusing Liz Truss of sending mortgage costs "spiralling" with her mini-budget. | |
| And in comments that will be seen as a swipe at the Labour mayor of Greater Manchester, Andy Burnham, Reeves said: "There are still those who peddle the idea that we could just abandon economic responsibility and cast off any constraints on spending. | And in comments that will be seen as a swipe at the Labour mayor of Greater Manchester, Andy Burnham, Reeves said: "There are still those who peddle the idea that we could just abandon economic responsibility and cast off any constraints on spending. |
| "They are wrong - dangerously so - and we need to be honest about what that choice would mean." | "They are wrong - dangerously so - and we need to be honest about what that choice would mean." |
| Burnham has continued his vocal criticism of Sir Keir Starmer during Labour's conference and has not ruled out a leadership bid. | Burnham has continued his vocal criticism of Sir Keir Starmer during Labour's conference and has not ruled out a leadership bid. |
| However, he prompted a backlash from some Labour MPs after he suggested ministers were "in hock to the bond markets" - a reference to the government's self-imposed rules limiting spending and borrowing. | However, he prompted a backlash from some Labour MPs after he suggested ministers were "in hock to the bond markets" - a reference to the government's self-imposed rules limiting spending and borrowing. |
| Despite dismissing the Tories as an "irrelevance", Reeves repeatedly used the tagline: "Don't ever let anyone tell you that there's no difference between a Labour government and a Conservative government." | Despite dismissing the Tories as an "irrelevance", Reeves repeatedly used the tagline: "Don't ever let anyone tell you that there's no difference between a Labour government and a Conservative government." |
| Urging Labour activists to take "pride in what we are achieving", she listed some of the party's key pledges, including recruiting new neighbourhood police and opening school breakfast clubs. | Urging Labour activists to take "pride in what we are achieving", she listed some of the party's key pledges, including recruiting new neighbourhood police and opening school breakfast clubs. |
| It has been a torrid few months for the chancellor, who sparked a temporary rise in government borrowing costs in July following a tearful appearance in the Commons, amid speculation about whether she could keep her role. | It has been a torrid few months for the chancellor, who sparked a temporary rise in government borrowing costs in July following a tearful appearance in the Commons, amid speculation about whether she could keep her role. |
| Meanwhile, Reeves is facing pressure from some Labour MPs to increase spending, with many calling for the government to scrap the two-child benefit cap. | Meanwhile, Reeves is facing pressure from some Labour MPs to increase spending, with many calling for the government to scrap the two-child benefit cap. |
| Ministers have hinted they could lift the cap in the Budget - a move which would cost an estimated £3.5bn a year. | Ministers have hinted they could lift the cap in the Budget - a move which would cost an estimated £3.5bn a year. |
| In June the government also abandoned plans which would have cut nearly £5bn from the benefits bill, in the face of a major backbench rebellion. | In June the government also abandoned plans which would have cut nearly £5bn from the benefits bill, in the face of a major backbench rebellion. |
| However, delegates watching her conference speech in the main hall seemed determined to buoy the chancellor, with a standing ovation when she took to the stage and another when she addressed a pro-Palestinian protester who interrupted her speech. | |
| Reeves told the heckler: "We understand your cause and we are recognising a Palestinian state. But we are now a party in government, not a party of protest." | Reeves told the heckler: "We understand your cause and we are recognising a Palestinian state. But we are now a party in government, not a party of protest." |
| Protester with Palestinian flag interrupts Reeves | Protester with Palestinian flag interrupts Reeves |
| Reeves also used her speech to criticise Reform UK, which has been topping opinion polls for several months, despite having only five MPs. | Reeves also used her speech to criticise Reform UK, which has been topping opinion polls for several months, despite having only five MPs. |
| Labour has stepped up its attacks on the party at its conference. | Labour has stepped up its attacks on the party at its conference. |
| "The single greatest threat to the way of life and to the living standards of working people is the agenda of Nigel Farage and the Reform Party," the chancellor said. | "The single greatest threat to the way of life and to the living standards of working people is the agenda of Nigel Farage and the Reform Party," the chancellor said. |
| "Whatever falsehoods they push, whatever easy answers they peddle, however willing they are to tear communities and families apart, they are not on the side of working people." | "Whatever falsehoods they push, whatever easy answers they peddle, however willing they are to tear communities and families apart, they are not on the side of working people." |
| Coming two months ahead of the Budget, when the chancellor will set out the government's tax and spending plans, Reeves's speech was relatively light on policies. | Coming two months ahead of the Budget, when the chancellor will set out the government's tax and spending plans, Reeves's speech was relatively light on policies. |
| She confirmed that young people who have been out of a job or education and receiving Universal Credit for 18 months will be offered a guaranteed paid work placement, as part of plans to tackle youth unemployment. | She confirmed that young people who have been out of a job or education and receiving Universal Credit for 18 months will be offered a guaranteed paid work placement, as part of plans to tackle youth unemployment. |
| Those who refuse to take up the offer without a reasonable excuse will face sanctions such as losing their benefits. | Those who refuse to take up the offer without a reasonable excuse will face sanctions such as losing their benefits. |
| Other announcements included: | Other announcements included: |
| A pledge to fund a library in every primary school in England by the next election | A pledge to fund a library in every primary school in England by the next election |
| A new "hit squad" of investigators to target Covid fraudsters, with new powers to recover money lost to PPE contracts which failed to deliver | A new "hit squad" of investigators to target Covid fraudsters, with new powers to recover money lost to PPE contracts which failed to deliver |
| New legislation to help ensure ships and steel are British-made | New legislation to help ensure ships and steel are British-made |
| The government will "push ahead" with plans for Northern Powerhouse Rail | The government will "push ahead" with plans for Northern Powerhouse Rail |
| Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond. | Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond. |