UK Finance Minister Rachel Reeves has ruled out a return to austerity measures, aiming to lift the nation's spirits after Labour's landslide election victory in July. Speaking at the party's annual conference in Liverpool on Monday, Reeves painted an optimistic picture of Britain's future, emphasizing investment in manufacturing and services to foster economic growth.
"There will be no return to austerity," Reeves declared to a packed conference hall. "Conservative austerity was a destructive choice for our public services—and for investment and growth too."
Labour had previously tempered expectations by highlighting the significant fiscal gap left by the outgoing Conservative government, which had implemented radical spending cuts following the 2008 financial crisis. Reeves acknowledged the challenges ahead, citing a £22 billion hole in public finances inherited from the previous administration.
"We must deal with the Tory legacy, and that means tough decisions. But we won't let that dim our ambition for Britain," she affirmed.
Despite facing criticism for her decision to cut winter fuel payments for pensioners, Reeves remained steadfast in her commitment to fiscal responsibility without compromising growth. She announced plans to introduce free breakfast clubs for primary school children, signaling Labour's focus on supporting families and future generations.
"My optimism for Britain burns brighter than ever. My ambition knows no limits because I can see the prize on offer if we make the right choices now," she enthused.
Reeves also addressed concerns over the economy, which has seen consumer confidence plunge according to a recent survey. Critics have accused her and Prime Minister Keir Starmer of contributing to economic pessimism. In response, Reeves emphasized that political stability is crucial for attracting business investment and pledged not to raise income tax, National Insurance, value-added tax, or corporation tax.
"Companies will have to contribute more," she noted, hinting at alternative revenue streams to bolster the economy without burdening individuals.
The government faces immediate challenges, including a recent vote by English National Health Service nurses rejecting a government pay award for 2024/25. To help restore public finances, Reeves announced the appointment of a COVID-19 corruption commissioner tasked with investigating over £650 million in pandemic contracts awarded by the previous government under what were described as exceptional circumstances.
Critics have alleged that these contracts were awarded to friends and favorites, sometimes resulting in unusable personal protective equipment.
Reeves concluded her address by reiterating her commitment to building a prosperous Britain without repeating the austerity measures of the past. "We won't duck tough decisions—not for political expediency, not for personal advantage," she asserted.
Reference(s):
UK Chancellor rules out return to austerity at party conference
cgtn.com
