Chancellor warns of 'harsh headwinds' as she fails to dispel fears over tax rises

” Rachel Reeves has warned of “harsh global headwinds” battering Britain’s economy, as she failed to dispel fears over major tax rises at the next Budget.

- MILLIE COOKE

In an upbeat but policy-light speech on the main stage of the Labour conference in Liverpool, the chancellor attempted to fight back against a growing sense of doom and gloom about the economy, instead saying she sees a country that is “primed for economic success”.

She also appeared to take aim at Andy Burnham over his economic approach, warning that unrestrained borrowing is “dangerously wrong”.

Appearing more confident and relaxed than she has been in months, the chancellor received 10 standing ovations as she set out her pitch to Labour members ahead of what will be a difficult Budget in November.

“Don’t ever let anyone tell you that there’s no difference between a Conservative government and a Labour government,” she repeatedly warned.

The buoyant applause from Labour members throughout the speech indicates they have not given up on the beleaguered chancellor after a difficult first year that saw widespread rumours that she could be demoted.

However, it comes amid rampant speculation over tax rises at the next budget after the chancellor earlier admitted that “the world has changed” since she promised business chiefs she would not repeat the tax raid of her first budget.

Ms Reeves told delegates she would keep control of the public finances and would “not take risks with the trust placed in us by the British people”.

But she acknowledged that her choices had been made “harder” by international events and the “long-term damage” done to the economy.