Rachel Reeves’ 7 reasons to be cheerful – POLITICO

3) Belt-tightening is good, actually…

What she said: Reeves reminded the conference hall of the difficult, and unpopular, decisions she has made in office so far — with a tough budget to come. She talked about reviewing which new hospitals to axe; cancelling new road and rail projects; and means-testing the winter-fuel payment. “I know not everyone in this hall, or in the country, will agree with every decision that I make, but I will not duck those decisions,” she said. 

What she meant: Reeves has gambled that Brits’ trust in Labour’s economic grip hinges on her old friend “iron discipline” — and she’s keen to paint herself as the carrier of that flame. The argument is that without solid public finances, Labour can’t do much of anything.

4) …but not Tory belt-tightening

What she said: This was the key bit. Turning to next month’s budget, the first Labour fiscal event in 14 years, the chancellor vowed: “There will be no return to austerity.” 

“Yes, we must deal with the Tory legacy, and that means tough decisions, but I won’t let that dim our ambition for Britain,” she said. “It will be a budget with real ambition. A budget to fix the foundations. A budget to deliver the change we promised. A budget to rebuild Britain.”

What she meant: There’s more to this government than just penny-pinching and blaming the Tories, honest. To try and prove the point, Reeves promised a new industrial strategy would be coming in October, a counter to “trickle-down, trickle-out economics.” Reeves talked up pay-rises for public sector workers as a tangible achievement in government. “We made that choice not just because public sector workers needed that pay rise, but because it was the right choice for parents, patients and for the British public, the right choice for recruitment and retention, and it was the right choice for our country,” she said.

5) We’re already getting results

What she said: In a personal section of the speech, Reeves waxed lyrical about the work of her parents, who were primary school teachers. And she used this to give a timeline for Labour’s big plan to set up breakfast clubs in every primary school across England from next April, something the party argues will help tackle child poverty and boost school attainment. “I will judge my time in office a success if I know that at the end of it there are working-class kids from ordinary backgrounds who lead richer lives, their horizons expanded, and able to achieve and thrive in Britain today,” she said.