Labour’s shadow chancellor Rachel Reeves has said the UK government is putting the economy at risk and hit out at Prime Minister Liz Truss’ “economic austerity” plan after the pound plunged to a historic low against the dollar.
Sterling fell to a low of $1.0327 on Monday, before settling around $1.07, following lows seen after Chancellor Kwasi Kwarteng unveiled his package of cuts on Friday taxes of £45 billion in the mini-budget.
He described the “trickle-down economy” as an idea that “has been tried, tried and failed”, during a speech at the Labor conference in Liverpool.
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“We are facing a national emergency,” he said. “Energy prices are going up, the cost of the weekly food shop is going up, people’s wages are not keeping up.
“On Friday, the chancellor had a chance to set out a serious response to the cost of living crisis. And he failed.”
Reeves promised a new deal for working people, with strengthened rights, saying “the minimum wage will be set at a level that reflects the real cost of living”.
Among his priorities, he said he would double the number of medical school places “so our NHS has the doctors it needs”, and would also double the number of district nurses and create 10,000 more nursing and midwifery posts every year.
“Those in charge will pay their fair share”
The shadow chancellor said the new vacancies, which include 5,000 new health visitors, will be funded by clawing back the 45p income tax rate cut the government introduced last week.
She said, “I can tell you that those at the top will pay their fair share.”
Labor said the tax cut will cost £6bn between now and 2026/2027 and will only benefit the top 600,000 earners, each of whom will receive £10,000.
The party said that by reversing the cut, they can fund “one of the biggest expansions of the NHS workforce in history”.
Ms Reeves also pledged to create a National Economic Council to bring together unions and industry to help make business decisions.
He said he will scrap business rates and reform the way businesses pay tax so they “get valuation allowances straight away instead of waiting years for their money back”.
He also spoke about Brexit, saying that any government that is “remotely serious” must “make Brexit work”.
“It’s time for a government on your side”
The shadow chancellor called the Conservative Party’s record “12 years of failure”, adding: “It’s time for a government that stands by you, and that government is a Labor government.”
He ended by listing Labour’s priorities, which he said are strong public services, a greener and fairer Britain and hope and opportunity.
She said: “The Prime Minister is content to let the energy giants pocket the cash and let your children and grandchildren pick up the tab.
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“Under these Tories, those with the broadest shoulders bear the lightest burden. And not by chance, but by choice.
“It’s time for a government that stands by you.
“Make no doubt, this government is on the way.”
Sky News deputy political editor Sam Coates said the speech represented a “dramatic escalation” in Labour’s attack on Mrs Truss’s economy.
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6:11 This is a party with his confidence restored
He said it also shows that this is a party “regaining their confidence”.
Earlier, Ms Reeves told Sky News she was more optimistic about the party’s future than she had ever been in her 12.5 years as an MP.
Labor leader Sir Keir Starmer is due to deliver a conference speech tomorrow, when he will face huge pressure to successfully run as prime minister-in-waiting.
Last night, a new poll found the party is on course for a comfortable 56-seat majority at the next election, regaining many of the red-wall seats it lost in 2019.