Many want to bring down Britain – Labor will defy pessimists and exceed expectations | Rachel Reeves

AI am confident that the foundations of the British economy remain strong. Since the election, we have seen interest rates cut five times, three trade deals with some of the world’s largest economies, and wages rising faster than inflation. Tens of billions of pounds of investment were secured, with company after company choosing Britain as a beacon of economic stability and success in a more dangerous world.

And you never hear those on the right of British politics championing these successes. They are determined to talk about a broken economy because that is the only way their politics can breathe. They talk about a Britain in perpetual decline because that is the height of their ambitions for it. I reject both claims.

I am ambitious for our country because I believe a better future is within our reach and I believe in the promise of change on which this Labor Government was elected 14 months ago. But I also accept that our country and our economy still face challenges.

I don’t need a spreadsheet to tell me that many working people in Britain feel the economy is unfair and not working in their favour, with the cost of living still affecting family budgets. I don’t need a graph To tell me that the world has become a riskier and more uncertain place, resulting in the cost of borrowing rising for countries around the world. No one needs to be told that the economy has not been as productive as it could have been over the past fourteen years.

There has been a lot of speculation in the media over the past few days and weeks about the conclusions the Office for Budget Responsibility will reach about the UK’s long-term productivity. These conclusions will be presented in next month’s Budget and I will not pre-empt them. But I will be frank now that the productivity performance we inherited from the previous Conservative government and since the financial crisis has been very poor.

Austerity, a messy Brexit and the pandemic have left deep scars on the British economy that are still felt today. But the task facing our country – and facing me as chancellor – is not to downplay the past or let past mistakes define our future. I am determined that we not only accept expectations, but also challenge them We already have this year. Doing so means making the necessary choices today, including in next month’s budget.

This means that there can be no return to austerity. It was the Conservatives’ failed austerity policies that were being brought up And again by the party’s current leadership – which has stifled investment, piled up debt, and left hospital waiting lists soaring. If productivity is our challenge, then investment is our solution. Investing in our NHS to reduce hospital waiting lists. Investing in our national infrastructure – from roads and railways to energy and defense – to build Britain back and create jobs across the country. And investing in our economy so we can unlock growth.

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Investment is an essential part of our economic strategy, but it cannot come at the expense of economic responsibility. I will not repeat the mistakes Liz Truss made three years ago When spending got out of control and markets lost confidence. I will keep my promise to the British people to take control of the country’s finances and pay off our country’s debts because there is nothing progressive about using a Labor government. Approximately £1 in every £10 Of public money you spend on financing debt interest.

In addition to investing, we will make long-term decisions that are in our country’s interests and opposed by our political opponents. From building a closer relationship with the EU and securing new trade deals with our friends and allies to fixing our broken planning system so we can build homes for the next generation to own.

These decisions – and the decisions I will make within the framework of the budget – do not come for free and are not easy, but they are the right, just and necessary choices. This is how we will turn our backs on decline and build a better future for tomorrow.

• Rachel Reeves is the Chancellor of the Exchequer

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