Labour conference live: Rachel Reeves to vow ‘no return to austerity’ as unions debate ‘new deal for working people’

Angela Rayner tears up as she opens Labour conference as deputy prime minister

The chancellor is set to join the prime minister in vowing there will be “no return to austerity” when she gives her speech at the Labour Conference.

Speaking at the event on Monday, Rachel Reeves is to pledge that the government’s autumn Budget statement will be used to “rebuild Britain” and deliver on the change Labour offered at the election, as ministers seek to move out from under the shadow of a row about donations.

Her speech will come after Sir Keir Starmer vowed Labour would not return to an austerity agenda to deal with public spending pressures, with Ms Reeves set to join him.

Deputy prime minister Angela Rayner was the first major speaker on Sunday with an optimistic speech on new rights for workers and renters.

On Monday, the unions will debate how the Labour government will deliver a “new deal for working people”.

Leaders including the RMT’s Mick Lynch and Matt Wrack of the Fire Brigade Union will grill transport minister Lord Hendy and potentially also business minister Justin Madders.

The Independent’s political team will be reporting throughout the week from the Labour Party conference in Liverpool.

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Chancellor not ruling out capital gains tax rises

Rachel Reeves has recommitted to Labour’s pledge not to raise income tax and national insurance at the October Budget.

But the chancellor refused to rule out a potential hike in capital gains tax.

Speaking to Sky News, she said: “I’m not going to get into speculation about individual tax changes.

“But our manifesto commitment, which was not to increase taxes on working people, that means income tax, national insurance and VAT rates, but also not to increase corporation tax, to cap it at its current level for the duration of this parliament, those are things we committed to in our manifesto and we’re going to deliver on those manifesto commitments.

“Trust in politics is at an all time low, and that is largely because governments have promised one thing at elections, and then they haven’t followed through.”

(Sky News)

Salma Ouaguira23 September 2024 07:33

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Reeves vows to bring ‘growth in public spending’

Asked whether there would be cuts to public services, Rachel Reeves insisted “there will be growth in public spending”.

She told Times Radio: “There’s not going to be austerity under Labour.

“Not only did it do huge damage to our public services, but it also did huge damage to our economy, because it choked off the investment that is needed to grow the economy.

“Now, the commitment that I will make for this Budget is that it will be about protecting living standards, fixing the National Health Service, and then, crucially, about rebuilding Britain.

“Because we can’t keep cutting investment spending, which is what the previous Conservative government did, and that chokes off the private investment that is necessary to grow our economy.

“We need that infrastructure, the housing, the energy infrastructure, the digital infrastructure, the research labs.

“I want them here in Britain, there’s a global race on for some of the jobs and industries of the future, whether it’s in life sciences, low carbon energy or tech.”

There were “loads of reasons to be optimistic” but “investment doesn’t come by chance”, Ms Reeves said.

“We’re going to back the builders, not the blockers, and bring that investment back to Britain,” she added.

Salma Ouaguira23 September 2024 07:32

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Chancellor defends means-test winter fuel payments decision

Chancellor Rachel Reeves has defended her decision to means-test winter fuel payments, highlighting that the increased take-up of pension credit and the retention of the state pension triple lock would protect incomes.

She told Times Radio that the campaign to encourage take-up of pension credit, which means people become eligible for the winter fuel payment, meant “we’re now seeing applications at more than 10,000 a week, they were around 3,000 a week previously”.

Ms Reeves said: “But, also, we’re committed to keeping the triple lock, not just for one year, but for the whole of this parliament.

“Already, the triple lock means that the pension this year is worth £900 more than a year ago, I’ll announce at the Budget probably another increase of around £460 next April, and over the course of this parliament, the new state pension is likely to rise by £1,700.

“So, we are protecting pension incomes through the triple lock, which means that they will go up by the highest of inflation, 2.5 per cent or earnings.”

Chancellor of the Exchequer Rachel Reeves takes part in a morning media interview for Times Radio at the Labour Party Conference in Liverpool
Chancellor of the Exchequer Rachel Reeves takes part in a morning media interview for Times Radio at the Labour Party Conference in Liverpool (Peter Byrne/PA Wire)

Salma Ouaguira23 September 2024 07:32

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Thornberry urges Starmer to cut post-Brexit border checks

Emily Thornberry has indicated that she intends to use her powerful new position in the Commons to push Keir Starmer to go further on undoing the harms of Brext.

The newly elected chair of the foreign affairs committee urged Keir Starmer to cut vast amounts of unnecessary checks at the border as part of his planned Brexit EU reset.

There was “no need” for small businesses to give up trading with the European Union because of the friction, she said.

Ms Thornberry, who was snubbed by Starmer for a ministerial position, also said a Labour government in “full cry” could develop a proper trading relationship with the European Union for the first time since the UK left.

Our Whitehall editor Kate Devlin has the full story:

Salma Ouaguira23 September 2024 07:30

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Day two of Labour conference

During day two of the Labour conference in Liverpool, the party’s focus will shift to the economy.

Rachel Reeves is expected to deliver a keynote speech on the main stage at midday.

She will insist that “tough decisions” on the public finances are needed to prevent economic ruin and will attempt to persuade her critics that there will be “no return to austerity”.

Also at the top of the agenda today are environment secretary Steve Reed, energy secretary Ed Miliband and Scottish Labour leader Anas Sarwar.

But before her speech, the chancellor will do the morning media roun – our political team will bring you the latest updates throughout the day from the conference.

Salma Ouaguira23 September 2024 07:16

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Reeves to vow ‘no return to austerity’ during Labour’s conference in Liverpool

Rachel Reeves will attempt to lift the gloom that has settled over Labour’s conference in Liverpool with a pledge that there will be “no return to austerity”.

In a bid to offer some hope, she will say: “My optimism for Britain burns as bright as it ever has done. My ambition for Britain knows no limits, because I can see the prize on offer if we make the right choices now.”

But the message threatens to come across as jarring amid growing concerns among Labour activists about government cuts and tax rises in her Budget next month.

The chancellor will attempt to reset the narrative by insisting that she is “optimistic” for Britain.

Our political editor David Maddox has the full story:

Salma Ouaguira23 September 2024 07:08

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Labour could face defeat at next election without losing single vote – research

Labour could be defeated at the next general election without losing a single vote, new analysis of its “broad but shallow” support base suggests.

The ruling party will need to increase its vote share to avoid becoming a one-term government or being forced into coalition with others, according to research by More in Common.

The think tank warns that a modest Conservative recovery, by mobilising former voters who stayed home in 2024 and winning back half of Reform’s votes, would be enough for the opposition to overtake Labour by 20 seats.

In such a scenario the Tories would be left with 293 seats and Labour with 273, More in Common said.

To see off this threat, Sir Keir Starmer’s party needs to increase its vote share from 33.7% in 2024 to at least 36% in 2029, according to the research.

The think tank said Labour’s best strategy for staying in power involves finding a way to appeal to both left and right – including half a million Tory voters who considered lending their support to Labour in 2024 as well as those who flipped to the Greens and independent candidates.

Its research suggests that Sir Keir had a historically short honeymoon period, with almost one in five who backed Labour at the July 4 poll saying they have voters’ remorse.

The data comes from a poll of 2,005 people representative of British adults between September 16 and 18, the think tank said.

Sir Keir Starmer’s party could be defeated at the next general election without losing a single vote, new analysis of its ‘broad but shallow’ support base suggests
Sir Keir Starmer’s party could be defeated at the next general election without losing a single vote, new analysis of its ‘broad but shallow’ support base suggests (PA Wire)

Tara Cobham23 September 2024 07:00

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Reeves pledges investment to ‘rebuild Britain’ will feature in Budget

The Government’s autumn Budget statement will be used to “rebuild Britain” and deliver on the change Labour offered at the election, Rachel Reeves is to pledge.

The Chancellor will make her speech at the Labour Party conference on Monday as ministers seek to move out from under the shadow of a row about donations.

After weeks of warning about a poor economic legacy left by the Conservative government, Ms Reeves is also expected to signal a path towards further public investment, which she will claim is the “solution” to the UK’s growth problem.

The Chancellor’s speech comes after Sir Keir Starmer vowed Labour would not return to an austerity agenda to deal with public spending pressures.

Ms Reeves will insist economic stability is “the crucial foundation on which all our ambitions will be built”, as she seeks to justify to Labour members the spending restrictions which are aimed at filling a £22 billion “black hole” in public finances.

Labour top brass is braced for a clash with the unions over one of these measures: the cut to winter fuel payments for most pensioners.

But Ms Reeves will join Sir Keir in maintaining “there will be no return to austerity” in an appeal to the Labour movement.

“Conservative austerity was a destructive choice for our public services – and for investment and growth too,” the Chancellor will say.

She is expected to add: “We must deal with the Tory legacy and that means tough decisions. But we won’t let that dim our ambition for Britain. So it will be a budget with real ambition. A budget to fix the foundations. A budget to deliver the change we promised. A budget to rebuild Britain.”

In a signal of Labour keeping its manifesto commitments, Ms Reeves will promise not to raise national insurance, income tax and VAT. She will also say corporation tax is to remain at its “current level for the duration of this Parliament”.

Tara Cobham23 September 2024 06:00

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Angela Rayner’s Queen of the North act is tiring – but it works for me

I never know quite where I stand when it comes to Angela Rayner. On the one hand she’s a witty, well-informed paragon of working-class excellence, whose presence in Downing Street is a testament to both her own perseverance and the notion that in the UK, hard work reaps vast rewards no matter your background.

The deputy PM kicked off proceedings at the first day of the Labour conference in Liverpool today with an optimistic, at times emotional speech on housing, worker’s rights, and the party’s vision for the future.

Ryan Coogan23 September 2024 05:00

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Watch: Angela Rayner shown public reaction to Labour donations row on live TV

Angela Rayner shown public reaction to Labour donations row on live TV

Tara Cobham23 September 2024 04:00