Rachel Reeves Vows No Return to Austerity Amid Economic Challenges

British finance minister Rachel Reeves, addressing the Labour Party's annual conference, ruled out a return to austerity despite financial challenges. Reeves emphasized investment in manufacturing and services, political stability, and tough decisions like cutting winter fuel payments for pensioners. Her message aimed to shift the mood from gloom to optimism.

British finance minister Rachel Reeves declared on Monday that the country would not return to 'austerity,' striving to uplift the Labour Party's somber tone since its sweeping election win in July.

At the party's annual conference, Reeves offered a hopeful yet vague vision of a wealthier Britain through investments in manufacturing and services. She promised growth and decent wages despite the past Conservative government's radical cutbacks and public finance gaps. However, she set no specific timeline for these changes and admitted to making tough decisions, like cutting winter fuel payments for pensioners.

'There will be no return to austerity,' Reeves reiterated to a packed conference hall in Liverpool, citing Conservative austerity as a destructive force for public services and investment. Echoing a call for political stability, she noted the Labour government would still grow public spending but avoid raising core taxes while expecting businesses to invest more. Aiming to recover misspent pandemic funds, Reeves announced the appointment of a COVID corruption commissioner.

(With inputs from agencies.)