Reeves to pledge there will be 'no return to austerity'

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”.

- DAVID MADDOX

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.

It comes as the Labour leadership has faced a tirade of criticism over Sir Keir Starmer and other senior ministers receiving thousands of pounds’ worth of gifts and freebies. And as activists gathered in Liverpool, the conference had the feeling of being under siege from protesters, with some supporting the Palestinians and others accusing Labour of preparing to slash public services.

In a disastrous interview yesterday morning with the BBC’s Laura Kuenssberg, deputy prime minister Angela Rayner attempted to explain away the prime minister’s acceptance of gifts by asserting that “all MPs do it”. Her response appeared to jar with the narrative of “change” Labour had promised at the election, along with the conference slogan, “Change begins”.

While Ms Rayner rallied from her interview with a barnstorming speech promising a series of red-meat socialist measures such as reform to private lettings and the housebuilding programme – for which she was loudly cheered – other speeches, including those by foreign secretary David Lammy and health secretary Wes Streeting, had a much more muted reception.