UK Finance Minister Reeves Promises No Austerity Amid Tough Budget, Reports Reuters

LIVERPOOL, England – Finance Minister Rachel Reeves is set to assure the British public on Monday that there will be no return to “austerity” or broad spending cuts, despite earlier warnings of a challenging budget aimed at stabilizing the economy.

After Labour’s victory in July, Reeves indicated that tax increases would likely be part of her first budget on October 30 due to a reported £22 billion shortfall in public finances.

She also announced that millions of pensioners would no longer receive winter fuel payments, a decision criticized by trade unions and traditional Labour supporters, although the government stated it was not a choice they wished to make.

During her keynote address at the Labour Party conference in Liverpool, Reeves will emphasize her commitment to making the necessary decisions to ensure the stability that she believes is essential for business investment and family planning.

“There will be no return to austerity. Conservative austerity was a destructive choice for our public services and for investment and growth too,” Reeves will declare, according to excerpts from her speech.

“Addressing the Conservative legacy means making tough decisions, but we will not allow that to dampen our aspirations for Britain.”

In light of criticism that she and Prime Minister Keir Starmer have adopted an overly pessimistic outlook, which has overshadowed the Labour celebration of their first election win in 14 years, Reeves will suggest that there is a brighter future ahead, despite the difficult circumstances she has inherited.

“I can see the prize on offer if we make the right choices now. Stability is the crucial foundation on which all our ambitions will be built,” she will state.

Reeves will also reaffirm Labour’s commitments outlined in their manifesto not to increase income tax, National Insurance contributions, value-added tax, or corporation tax.