Rachel Reeves has said her ambition is for the UK to be “the best place to start and grow a business” as she promised Labour will bring investment to Britain.
The chancellor, speaking to Sky News ahead of her keynote speech at Labour’s conference today, said by bringing stability to the economy her administration will be “the most pro-growth government that this country has ever seen”.
Ms Reeves said: “This is all part of our agenda, to be the most pro-growth government that this country has ever seen, because there is immense potential, huge potential in the creative industries and our professional services in tech industries, low carbon technologies.
“I want those jobs here in Britain.
“There’s a global race on for these jobs, but if we can make the changes, which I’m determined to bring about, I know we can get that investment to Britain, increased living standards and more money in people’s pockets.
“Vibrant communities, stronger high streets and Britain will be the best place to start and grow a business. That’s my ambition.”
Image: Starmer’s government has been seen as too negative so far. Pic: PA
Ms Reeves said she will set out how the government will achieve that during her speech in Liverpool at lunchtime today.
She repeated Labour’s manifesto pledge to not raise VAT, income tax or national insurance.
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The chancellor is, however, expected to announce some changes at Labour conference. Any major announcements will be saved for the autumn budget on 30 October, though.
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Sir Keir Starmer’s government has been accused of being all doom and gloom since coming into power in July after a landslide victory but Ms Reeves appeared to be turning that around slightly.
She said: “If we can return that stability and reform our economy, I’ve never been so optimistic about our country’s future.
“If we can get this right, then there is no end to what we can achieve as a country.
“And that’s what I’m determined to do, to unlock the real potential that we have through stability, through reform, and then, crucially, through investment, which is a solution to the low growth that has bedevilled our economy this last decade or so.”
Conservative MP Gareth Davies, shadow exchequer secretary to the Treasury, accused the chancellor of using her “discredited narrative on her economy inheritance to avoid taking responsibility for the choices she has made”.
He accused her of spending “billions on inflation busting public sector pay rises for trade union backers paid for by snatching £300 from pensioners at the same time accepting thousands of pounds in free clothes and luxury holidays whilst telling families to tighten their belts”.
“She must take responsibility for the political choices she is making, now and at her first Budget. We will hold Labour to account on the promises they made,” he said.
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1:14
Lammy: ‘Britain is back’
Parties ‘rely on donations’
The row over Labour politicians accepting large donations has overshadowed the beginning of Labour’s first conference in government in 14 years, with Sir Keir taking more donations than any other MP.
Ms Reeves is on the lower end of the amount donated to her, and said the £7,500 she was given for clothes was from “an old friend” who wanted to donate to her campaign.
“I really appreciated that support, it made a big difference to me,” she told Sky News.
“It was never something that I planned to continue in government. As chancellor, that’s not something I’ll be doing.”
She added she understands people’s concerns but added politicians and parties rely on donations to campaign, which she thinks is right as taxpayers should not be funding them.
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The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.