Rachel Reeves Promises Growth Without Austerity Amid Tough Economic Decisions

British finance minister Rachel Reeves assured there would be no return to austerity while promising growth despite budget challenges. Reeves indicated tax increases and cuts to certain benefits. At the Labour Party conference, she emphasized stability and criticised previous Conservative austerity policies. Optimism for Britain’s future, despite tough choices, was highlighted.

British finance minister Rachel Reeves assured on Monday that there would be no return to austerity or widespread cuts, while promising long-term growth despite earlier warnings of a tough budget. Her comments came ahead of a keynote speech, where she expressed unprecedented optimism about Britain's future, even as she acknowledged the need for hard work.

Following Labour's landslide election victory in July, Reeves suggested that taxes might rise in her first budget on Oct. 30 to address a £22 billion ($29 billion) deficit in public finances. She also confirmed the cessation of winter fuel payments for millions of pensioners, a controversial decision criticized by trade unions and Labour supporters.

At the Labour Party conference in Liverpool, Reeves aimed to prioritize stability for businesses and families, condemning previous Conservative austerity measures as destructive. Reiterating that Labour's budget would protect living standards, NHS, and investment, she acknowledged the necessity of difficult choices but maintained an optimistic outlook for Britain.

(With inputs from agencies.)