UK finance minister rules out return to “austerity”. #UKFinance

UK Finance Minister Rachel Reeves ruled out the possibility of a return to “austerity” this Monday (23), seeking to tone down the pessimistic tone Labor has adopted since its election victory in July.

Labor has undercut British expectations by repeatedly saying the Conservatives, who imposed a radical “austerity” program in response to the 2008 financial crisis, have suggested future spending cuts and left a huge gap in the public finances.

Instead, speaking at the party’s annual conference, Reeves painted a picture – full of confidence but lacking in detail – of Britain’s rich thanks to investment in manufacturing and services, where decent wages and younger generations can thrive.

But he gave no time frame for when the UK would see the kind of growth and new jobs he described, and reiterated that tough decisions must be made, such as whether to cut winter fuel bills for pensioners.

Speaking to a packed hall in the northern English city of Liverpool, Reeves said: “There is no going back to austerity. Conservative austerity was a devastating choice for our public services – investment and growth.

“We have to deal with the legacy of the Conservative Party, which is to make tough decisions. But we will not let this dampen our ambition for the UK.

His upbeat message appeared to lift spirits at a time when the government is under pressure to explain why ministers accepted donations of clothes along with other gifts.

A survey last week indicated that consumer confidence had fallen, leading to accusations that Reeves and Prime Minister Keir Starmer were actually damaging the economy with an overly pessimistic outlook.