Reeves risking return of austerity, Labour rebels warn ...Middle East

Rachel Reeves urged Labour MPs to sell the “good news” of her plans to “renew Britain” and boost growth to voters on the doorstep.

But critics in the party expressed fears that day-to-day spending for some Whitehall departments was being cut due to the boost in budgets for health, education and defence, and that Labour risked a return to austerity.

John McDonnell, who was Jeremy Corbyn’s shadow chancellor, wrote on X: “Of course investment in housing & infrastructure is welcome but many departmental budgets at near standstill won’t solve [the] crisis in public services & threatened cuts in disability benefits & failure to tackle child poverty by scrapping 2 child limit [the two-child cap on some benefits] loom over like a dark cloud.”

Sharon Graham, general secretary of the Unite union, welcomed investment in nuclear energy, the steel industry and increased defence funding.

She added: “The UK is the sixth-richest economy in the world, and we need to end this cautious cycle of robbing Peter to pay Paul. You can’t have an NHS without workers. Staff are crying out for fair pay increases to offset a decade of real-terms pay cuts. Pitting workers against communities is not the answer.

Reeves toold Labour MPs: ‘People are only going to know the good news that we set out today if we campaign on it’ (Photo: House of Commons)

Graham suggested that instead of the “presentation of false trade-offs – defence but not international aid, cuts to disability benefits but no tax on the super-rich”, Labour needs to “set out a clear vision that people can see and feel and then they need to finance it.

Reeves told the PLP: “People are only going to know the good news that we set out today if we campaign on it, if we deliver the leaflets, if we speak to people on the doorstep, if we write those pieces for our local papers, that is how people are going to know that it is Labour making these differences.

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“It’s because of this Labour Government that we’ve already got 200,000 off of the waiting list. It’s because of this Labour Government that is going to be local community policing in their neighborhood. It is because of this Labour Government that we are going to have spades in the ground, building the tram links, the bus stations, the train stations.

Sir Mel Stride, the shadow Chancellor, said: “Now we know, taxes are coming. Today’s spending review was nothing more than an exercise in obfuscation. Looks clear that tax rises are on their way.”

‘Reminded me of George Osborne’

One Conservative MP said: “I thought the speech was very politically coherent. It reminded me of George Osborne. If I closed my eyes, it could have been him coming back. It reminded me of a speech he did back in the day.

However another Tory MP said: “I’m just not certain if it will have cut-through. It’s not going to hit home with voters, and it’s not enough to win over Reform. I’m not sure any of them will come back over to any side until they see results.

“They [Labour] need to stop talking about [Farage]. I’ve said this to their minister before. The more we talk about him, the more attention he gets. Every joke she makes, the camera flicks to him.”

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