I WON’T budge on fuel payments cuts, vows Rachel Reeves as chancellor admits ‘road ahead is harder than we thought’
Rachel Reeves pledged there will be no "return to austerity" under her Government as it continues to come under criticism in a row over freebies
RACHEL Reeves has today vowed not to “duck the difficult decisions” in a bid to square the winter fuel cut with angry Labour members.
Delivering her party conference speech, the Chancellor braced Brits for a tough Budget next month – warning: “The road ahead is harder and steeper than we expected.”
Her decision to strip winter fuel payments from 10 million pensioners has been the subject of fierce debate at the Liverpool get-together.
Unions, campaigners and even Labour MPs have railed against the move to means-test the £200-£300 cold-weather sum.
Seeking to calm the backlash, Ms Reeves told the audience: “I made the choice to means test the winter fuel payment, to target it at those most in need.
“I know that not everyone – in this hall, or in the country – will agree with every decision I make.
“But I will not duck those decisions. Not for political expediency. Not for personal advantage.
“Faced with that £22 billion black hole that the Conservatives left this year and with the triple lock ensuring that the state pension will rise by an estimated £1,700 over this Parliament, I judged it the right decision, in the circumstances we inherited.”
In her speech – briefly interrupted by a heckler – Ms Reeves repeatedly blamed Tory “recklessness” for the tough decisions coming in the October 30 Budget.
While ruling out hikes to income tax, VAT, National Insurance and corporation tax, other raids are expected.
A grab on capital gains tax and inheritance taxes are on the cards, as is a raid on pensions relief.
Despite the doom-and-gloom, Ms Reeves told Times Radio she is “excited” about the future and she has “never been more optimistic about our country’s fortunes”.
She also pledged there will be no “return to austerity” under a Labour Government as it continues to come under criticism in a row over freebies.
The first female Chancellor further declared the era of “trickle down, trickle out economics is over”.
Grinning Rachel tried to counter doom and gloom
By RYAN SABEY, Deputy Political Editor
RACHEL Reeves tried to forget all the recent doom and gloom being peddled over the economy by putting on a brave smile….literally.
The Chancellor was beaming during her speech trying to put a gloss after all the pessimism since Labour got into office.
She told party members in Liverpool that tough decisions will have to be made at next month’s Budget but there was a “prize” at the end.
However, she said there would be some short-term pain.
Pensioners who will miss out on up to £300 as Ministers axe the winter fuel allowance are going to be disappointed.
She even received a round of applause for the decision despite there being huge anger at the decision that will hit OAPs in the coming months.
The Chancellor, however, got back in her stride after a protester did their very best to raise concerns over arms sales to Israel.
She told delegates in the hall that Labour was now a party for working people rather than a party of protest.
There was also welcome news for parents in the 40-minute speech as she introduced a pilot scheme for breakfast clubs in the summer term.
She announced she will publish plans for a new industrial strategy alongside Business Secretary Jonathan Reynolds next month.
Ms Reeves went on: “A strategy for driving and shaping long-term growth in our manufacturing and service sectors, a strategy to unlock investment, create jobs and deliver prosperity, a strategy to help break down barriers to true growth, speed ahead to net zero, clean power by 2030 and build prosperity on strong and secure foundations.”
But just before she finished her keynote speech, the Chancellor faced a major blow as nurses in England rejected the Government’s 5.5 per cent pay offer.
The Royal College of Nursing’s defiant move came as the Chancellor boasted about securing public sector pay raises.
In a letter to Health Secretary Wes Streeting, RCN General Secretary Professor Nicola Ranger said: “Nurses are standing up for themselves, their patients, and the NHS. While many back the Government’s healthcare reforms, nursing staff are the lifeblood of the service, and their support is key to these changes’ success.”
The pay award was announced by the Chancellor at the end of July, shortly after Labour won the general election.
Her decision to strip winter fuel payments from 10 million pensioners is also likely to be the focus of a fierce debate at the gathering – with major trade unions demanding a U-turn on the policy.
At least five unions – Unite, Unison, Aslef, the Fire Brigades Union (FBU) and the Communication Workers Union (CWU) – are all expected to urge delegates to vote for the motion, according to union sources.
Labour MP for York Central Rachael Maskell last night piled pressure on the Government as she contrasted the scrapping of the universal winter fuel payment with accepting freebies.
Writing on X, formerly Twitter, she said: “I have been sickened by revelations of ‘donations’.
“It grates against the values of the Labour Party, created to fight for the needs of others, not self.
“Meanwhile, pensioners are having their winter fuel payments taken, risking going cold.
“I trust conference votes to change this.”
Ms Reeves will deliver her speech in the shadow of the row over freebies accepted by the PM and a number of Cabinet ministers, including herself.
Setting out the principles behind her Budget, she will say: “I can see the prize on offer if we make the right choices now. And stability is the crucial foundation on which all our ambitions will be built, the essential precondition for business to invest with confidence and families to plan for the future.
“The mini-Budget showed us that any plan for growth without stability only leads to ruin.
“So we will make the choices necessary to secure our public finances and fix the foundations for lasting growth.
“Stability, paired with reform, will forge the conditions for business to invest and consumers to spend with confidence.
“Growth is the challenge, and investment is the solution.”
The Chancellor set out new measures to crack down on tax dodgers to help claw back billions of pounds in lost revenue to help fund public services.
She plans to parachute 5,000 investigators over five years to crack down on tax avoiders – with 200 set to be brought in within weeks.
The Cabinet Minister said: “If you make your home and do your business in Britain, then you should pay your taxes here too.
“That is why we will reform, modernise and invest in HMRC.
“We will give it the resource it needs to go after those who are avoiding or evading tax, and we will modernise it so we have a system that is fit for purpose.”
Treasury Minister James Murray will be appointed as chairman of the HMRC board to help recoup more cash into public services such as the NHS.
Businesses will also be consulted later this year on ‘e-invoicing’ allowing for data to be transferred between firms that will help reduce burdens for firms.
