As she prepares to address the Labour Party conference, Reeves faces backlash over her decision to axe winter fuel payments for pensioners while pledging a new vision for the economy

Chancellor Rachel Reeves is set to unveil her vision for the UK’s economic future at the Labour Party conference in Liverpool, where she will deliver a keynote speech promising “a Budget to rebuild Britain.” With pressure mounting to provide a sense of optimism, Reeves aims to shift the narrative following Labour’s recent focus on the bleak economic conditions inherited from the Conservative government.

However, her plans risk being overshadowed by the backlash against her controversial decision to eliminate winter fuel payments for 10 million pensioners. This decision, which could spark a significant vote at the conference, has generated discontent among Labour supporters and poses a direct challenge to Starmer’s leadership.

Reeves finds herself entangled in an ongoing donations controversy that has tainted the party’s image, prompting Prime Minister Starmer to announce that Labour’s leadership will no longer accept gifts of clothing. The Chancellor is also expected to announce the appointment of a Covid corruption commissioner to recover £674 million linked to disputed contracts that the Conservatives previously agreed to waive.

In her speech, Reeves will emphasize that there will be “no return to austerity,” instead outlining Labour’s vision for a “decade of renewal.” She is poised to announce new measures targeting tax evasion, aiming to address the £39.8 billion gap between owed taxes and actual revenue. Plans include hiring 5,000 additional tax officers over the next five years, with 200 compliance officers expected to join HMRC in November.

“My optimism for Britain burns as bright as it ever has done,” Reeves will declare, as she urges the party to seize the moment for economic renewal. She acknowledges that recent years have seen a decline in growth and family incomes but believes the right choices can change the course of the future.

Addressing concerns over economic stability, Reeves will warn against a repeat of the financial chaos seen during Liz Truss’s brief premiership. She aims to reassure her audience that Labour will make the necessary choices to secure public finances and lay the groundwork for sustainable growth. “Stability, paired with reform, will forge the conditions for businesses to invest and consumers to spend with confidence,” she will assert.

Despite these ambitious plans, internal dissent looms. Polls indicate that many Labour members are unhappy with the decision to halt winter fuel payments, which provided up to £300 to every pensioner regardless of wealth. MP Rachael Maskell has publicly expressed her dismay over the revelations surrounding donations and the impact on vulnerable pensioners, emphasizing that the Labour Party’s core values should prioritize the needs of others.

As the conference unfolds, Deputy Prime Minister Angela Rayner finds herself defending her acceptance of gifts, including a stay in Lord Alli’s New York apartment. She asserts that she has acted within the rules and emphasizes transparency in these arrangements. Business Secretary Jonathan Reynolds also stands by the leadership, claiming that no wrongdoing has occurred.

The outcomes of Reeves’ speech and the subsequent vote on winter fuel payments will be pivotal in shaping the future direction of the Labour Party and its leadership.

SKY NEWS

Rachel Reeves, the Chancellor, is poised to deliver a significant speech at the Labour conference, where she will assert that there will be “no return” to austerity under a Labour government. Describing austerity as a “destructive choice,” Reeves aims to reassure party members and the public amid ongoing criticism regarding the party’s handling of donations and hospitality. This scrutiny has intensified following recent revelations about Sir Keir Starmer’s acceptance of corporate gifts and hospitality, raising questions about the ethics of leadership within the party.

In her address, Reeves is expected to outline her plans for the upcoming budget, scheduled for October 30, positioning it as a pivotal moment for “rebuilding Britain” and delivering the change that voters demanded in the recent election. She will likely emphasize the need for fiscal responsibility while investing in public services, countering narratives that suggest Labour might revert to austerity measures.

The conference comes at a critical time for Labour as it navigates internal tensions and external criticisms. Reeves’ commitment to avoid austerity will be central to her message, aiming to unify the party and reinforce its mandate for change. Her speech will seek to articulate a clear vision for economic recovery, highlighting Labour’s dedication to addressing public concerns while maintaining integrity in financial practices. As the conference unfolds, the emphasis will be on re-establishing trust and demonstrating that Labour can lead effectively without resorting to austerity.

THE TELEGRAPH

In a stark warning about the UK’s economic future, Chancellor Rachel Reeves will emphasize the need for “tough decisions” to stabilize public finances in her speech at the Labour conference. She argues that Britain risks economic ruin unless significant action is taken, highlighting a £22 billion deficit inherited from the previous government.

Reeves will assert that while austerity measures are off the table, the upcoming Budget will likely involve tax increases to support increased public spending. Her commitment to avoid cuts similar to those implemented by George Osborne in 2010 aims to reassure party members, but concerns about rising taxes remain prevalent.

The backdrop of her address includes tensions over proposed cuts to winter fuel payments for pensioners, with several trade unions poised to vote against the government’s decision to eliminate support for most pensioners. This potential backlash could symbolize a broader rejection of Labour’s current policies.

Reeves will frame her message around the necessity of creating a stable economic environment to foster business investment and consumer confidence, declaring that stability is the essential precondition for growth. As she prepares for a “painful” budget announcement on October 30, she will emphasize Labour’s ambition to “rebuild Britain,” while navigating the complexities of the party’s financial strategy.