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Today saw a shift in rhetoric from Chancellor Rachel Reeves as she moved to promise the Labour conference a more optimistic vision for the country. 

But quietly there also appears to have been a shift in approach, which could mean a markedly different landscape for public spending come the budget on 30 October, allowing far greater scope for Labour to borrow and spend.

Politics live: ‘More optimistic’ Budget could be in store

The easiest way to see the change is to compare the chancellor’s actions before and after the summer.

In July, when Ms Reeves created the £22bn “black hole”, she gave us a taste of how she intended to fill it.

Not only was there the means testing of the winter fuel allowance, but she did something the Treasury have been wanting for years – to cancel a whole load of investment projects, including road building with the A303 down to Cornwall, as well as delaying the hospital building programme.

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This was as striking as it was confusing. Such projects would be the cornerstone of any government’s growth plan.

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Yet in the eternal tension in Labour between fiscal discipline and growth, the former had won out seemingly at the expense of the latter.

And Treasury mandarins at the time were clear. The best way to fill an immediate £22bn black hole would always be to delay or can these investments – or capital projects.

Now fast forward to the Autumn and £16bn of the black hole remains to be filled on 30 October.

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There is no doubt that some tax rises, welfare cuts and spending curbs may be in the mix. But I am told that borrowing might also be used to plug this hole.

This is by no means certain – the government’s first fiscal rule could yet prevent this from happening.

But I am told they may reduce the amount of cuts or tax rises simply by putting it on the nation’s credit card once more.

This is just one of the ways that the government may allow itself to borrow more.

There is the well-trailed discussion about redefining debt in the second fiscal rule – a technical change that could free up £15bn or more.

There’s discussion about how to treat other assets like GB Energy on the balance sheet, which again could allow the government to borrow more within its rules.

The markets are unlikely to take fright. They have been convinced, it seems, by the vibe of Ms Reeves as an iron chancellor.

However, there is now a chance the optimistic vision she outlined today could come sooner than we think – thanks to higher borrowing.

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The crypto fund domicile decision: EU or the UK?

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The crypto fund domicile decision: EU or the UK?

The crypto fund domicile decision: EU or the UK?

As the EU’s MiCA regulation and the UK’s evolving crypto laws diverge, fund managers face a key choice: to opt for the EU’s legal certainty and passporting or the UK’s flexible, innovation-driven approach.

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Sir Keir Starmer hits out at politicians who ‘shout and scream but do nothing’ over grooming gangs

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Sir Keir Starmer hits out at politicians who 'shout and scream but do nothing' over grooming gangs

Sir Keir Starmer has said he gets “frustrated” with politicians who “shout and scream but do nothing” as he defended past comments about a grooming gangs inquiry.

Speaking to Sky News’s political editor Beth Rigby, the prime minister was asked if he regretted saying in January that those calling for a national probe into paedophile rings were “jumping on a far-right bandwagon” – given he has now agreed to one.

Politics latest: Baroness Casey asks people to ‘keep calm’ about grooming gang ethnicity data

Sir Keir said he was “really clear” he was talking about the Tories, who were demanding an inquiry they never set up when they were in government.

He said: “I was calling out those politicians.

“I am frustrated with politics when people shout and scream a lot and do nothing when they’ve got the opportunity to do it. It’s one of the worst aspects of politics, in my view.”

Sir Keir also said there “must be accountability” for authorities who “shied away” from talking about the ethnicity of perpetrators for fear of being branded racist, as exposed in a report by Baroness Casey published on Monday.

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Asked if he is happy for “social workers, policemen and people that failed” to be held accountable, the prime minister said: “Where the inquiry uncovers failure or wrongdoing, then there should absolutely be accountability.

“That is amongst the purposes of an inquiry, and it’s a statutory inquiry… which will therefore mean there is power to compel evidence of witnesses because it’s important that it is comprehensive and important that it gets to every single issue. And as part of that process, there’s accountability for individuals who did wrong.”

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Data dismissed ‘Asian grooming gangs’

Baroness Casey was asked to produce an audit of sexual abuse carried out by grooming gangs in England and Wales in January, when comments by tech billionaire Elon Musk brought the scandal back into the spotlight.

The government initially resisted calls from the Tories for a national inquiry into grooming gangs, saying they wanted to focus on implementing the recommendations of Professor Alexis Jay’s seven-year review into child abuse.

The review concluded in 2022 but the Conservatives did not implement its recommendations before they lost the election last July.

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The government’s position has changed following Baroness Casey’s audit, which recommended an inquiry.

Her report found that ethnicity data is not recorded for two-thirds of grooming gang perpetrators.

However at a local level in three police forces – Greater Manchester, South Yorkshire and West Yorkshire – “there has been a disproportionality of group-based child sexual exploitation offending by men of Asian ethnicity”.

The cross bench peer said instead of looking into whether ethnicity or cultural factors played a part, authorities “avoided the topic altogether for fear of appearing racist”, and this warranted further investigation.

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Coinbase is seeking SEC approval for ‘tokenized equities’ — Report

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Coinbase is seeking SEC approval for ‘tokenized equities’ — Report

Coinbase is seeking SEC approval for ‘tokenized equities’ — Report

If approved by the US regulator, the investment offering could have Coinbase competing against other stock trading platforms.

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