Rachel Reeves has called on workers to return to the office, stressing the benefits of in-person collaboration, as she prepares to set out Labour’s economic vision at the party’s conference in Liverpool this week.
Frankly speaking Interview with The TimesThe Chancellor has rejected the idea of remote working, saying she leads by example and highlighted her experience of working late into the night at the Treasury after Labour’s election victory.
Reeves, tasked with tackling a £22bn gap in the public finances, has rejected any suggestion of short-term fixes. Instead, she has focused on creating a long-term environment for investment, arguing that stability is key to economic growth. Her next speech will set out Labour’s vision for a brighter future, despite the sacrifices set to be made in the next budget.
While the chancellor warned of the need to take tough decisions, she rejected calls for a wealth tax and remained firm in her opposition to scrapping the controversial two-child benefit cap. She also rejected suggestions that Labour was “talking negatively” about the economy, arguing that businesses had “nothing to fear” from her pro-growth agenda, which aims to balance workers’ rights with economic development.
Reeves also indicated that the October 30 Budget would see additional funding for the NHS, addressing the challenge of reducing long waiting lists for healthcare services. However, she warned that there would be no magic bullet to solve the public finances problem, and stressed the importance of being realistic about what the government could afford.
In an apparent break with Business Secretary Jonathan Reynolds, Reeves rejected the idea that remote working motivates staff, insisting that meeting in the office generates better ideas. Pointing to her actions at the Treasury, she said: “We weren’t doing that on Zoom… People coming together collaboratively fosters ideas.”
As Labour approaches its first major conference since taking power, Reeves is keen to focus on the future, despite ongoing rows over the prime minister and other prominent figures accepting free gifts and clothes from donors. In an attempt to end the row, Reeves has announced that she and Labour leader Sir Keir Starmer will stop accepting such gifts.
The chancellor, who has no plans to impose new taxes such as a wealth tax, is committed to restoring the country’s financial stability. That includes efforts to root out fraud and errors in the welfare system, which have cost the Treasury billions. Labour is also exploring ways to tackle long-term illness, with Reeves saying the UK is one of the few countries where economic inactivity has increased since the pandemic.
As the government prepares for an investment summit in October, Reeves aims to show that the UK is “open for business” and will attract global investment to boost the economy. However, tensions remain over Labour’s proposed labour rights reforms, with businesses expressing concern about the potential economic impact of the employment rights bill.
Despite the challenges, Reeves remains confident in Labor’s economic plan. “We believe that supporting business and supporting workers are two sides of the same coin,” she said.