UKAnalysis

Rachel Reeves accentuates positives as she seeks to puncture gloomy economic mood at conference

The new chancellor quickly warmed to her theme that she would not shirk difficult fiscal decisions

The UK chancellor of the exchequer, Rachel Reeves, speaking at the UK Labour Party annual conference in Liverpool on Monday. Photograph: Hollie Adams/Bloomberg
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Mark Paul in Liverpool
Mon Sept 23 2024 - 19:02

Rachel Reeves became the first woman in British history to address a party conference as chancellor of the exchequer as she sought to move past the incessant gloom of the new Labour government’s recent messaging to carve out a vision of a more optimistic future for Britain.

Reeves reiterated her by-now boilerplate promise to impose painful “iron discipline” on Britain’s stuttering finances. But she also insisted her optimism “burns brighter than ever” following pushback from party members who argued the new government was being too negative.

The mood among many Labour delegates in advance of the chancellor’s noon speech at the Exhibition Centre in Liverpool (ECL) was a mix of satisfaction at the return to government and unease over recent political missteps such as rows over cabinet members getting gifts from donors.

Outside the weather on Monday reflected this political mood: a bit dank and wet with grey clouds overshadowing the day. As delegates queued in light rain to enter the ECL, an anti-Brexit protester with a loudspeaker blasted Beethoven’s Ode to Joy. Inside the atmosphere never really scaled such emotional heights.

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In the middle of her speech Reeves was forced to pause as the conference was disrupted by an anti-Israel protester who shouted complaints that Britain was selling arms to the Jewish state. It took almost a minute for staff to remove him, with one security officer dragging him along by the neck.

After a short silence Reeves surveyed the scene and announced this was now a “changed Labour Party and no longer a party of protest”. The main hall burst into cheering and enthusiastic applause in support of the chancellor.

Britain's business secretary Jonathan Reynolds delivers a speech on the second day of the annual Labour Party conference in Liverpool. (Photograph: Paul Ellis/AFP via Getty Images

Earlier she had sat at the top table in front of the hall and listened to a warm-up speech by Jonathan Reynolds, the business secretary. Monday was, after all, “business day” at the conference: senior cabinet members such as prime minister Keir Starmer and deputy prime minister Angela Rayner were prominent at morning gatherings of business leaders paying £3,000-a-head for access.

“We campaigned as a pro-business party and we will govern as a pro-business party,” said Reynolds, soothing words for business leaders who may have had concerns over the new government’s big pay rises for public sector workers and its New Deal to drive up wages and working conditions for all.

Reeves was introduced by Alex Depledge, a tech entrepreneur and prominent businesswoman. She lauded the chancellor as the “wrecking ball” who would shake Britain out of the economic torpor that set in under the Tories and return it to stable and significant growth.

But before relief there must come pain. When Reeves took to the stage she initially soaked up acclaim for being the first woman chancellor, but then quickly warmed to her theme that she would not shirk difficult fiscal decisions. “We were elected because, for the first time in almost two decades, people looked at us – looked at me – and decided Labour could be trusted with their money,” said Reeves.

Reeves is preparing for a tough budget next month and has already cut winter fuel payments for many pensioners. In a sign of tensions within the Labour movement, trade union delegates were on Monday on manoeuvres at the conference, drumming up support for a motion asking her to reverse the fuel cut. It would not be binding on Reeves, however, and she made clear she will press ahead.

Then she reached for the positives. Every big political speech in Britain contains a central message, a mantra, that is delivered over and over again. Eleven times Reeves teased a vision of future success and declared: “That is the Britain we are building.”

Starmer’s big speech is due on Tuesday, before the conference ends on Wednesday. After that the hard work really begins for the new Labour government.