Labour conference: Reeves and Reynolds to unveil industrial strategy following ‘Budget for investment’

Rachel Reeves has announced the government will unveil its long-promised industrial strategy next month, as she vowed to deliver a “Budget for investment”.

The Chancellor took an upbeat tone as she stressed that her “optimism for Britain burns brighter than ever”.

Ahead of the October 30 Budget, she argued: “Growth is the challenge, and investment is the solution.

“Investment in new industries, new technologies and new infrastructure.”

She added: “We’ll make Britain, the best place to start and grow a business, whatever background you come from.

“This is how we’ll achieve what we promised the five missions that will comprise a decade of national renewal. That is the Britain we are building, that is the Britain that I believe in.” 

Addressing the Labour Party’s annual conference in Liverpool, Reeves’ speech came as the government faced criticism for overdoing its narrative of economic gloom.

And she vowed to unleash the power of No11, in a signal she intends to tackle so-called ‘Treasury brain’, arguing: “It is time that the Treasury moved on from just counting the costs of investment so recognizing the benefits too.

“The era of trickle down, trickle out economics is over, and so next month, alongside our business secretary, Jonathan Reynolds, we will publish our plans for the new industrial strategy for Britain.”

The Chancellor also hit out at what she called a “carnival of waste and fraud” during the Covid-19 pandemic, with she said, “more than a billion pounds spent on PPE that either did not arrive, was not fit for purpose”.

Reeves said “on entering government” Labour found £674m of contracts and disputes, and claimed the Tories advised her to scrap attempts to reclaim the cash.

On her decisions to plug the so-called £22bn black hole, Reeves stated: “It was made clear to me that failure to act quickly could undermine the UK’s fiscal position with implications of public debt, mortgages and prices.”

The Chancellor, who took to the stage in a dark purple suit and spoke against a red and Union Jack backdrop, was interrupted by a protester from group Climate Resistance, who shouted about arms sales to Israel, before being hauled out by security.

In a line echoing Prime Minister Sir Keir Starmer’s comments when he was interrupted by a protester with glitter during his own conference speech last year, Reeves said: “We are a changed Labour party that represents working people – not a party of protest.”

Her speech followed business secretary Jonathan Reynolds’, who argued for workers to receive a “real living wage” to benefit businesses who need “customers who have some money in their pocket”. 

She was introduced by Alex Depledge, a tech entrepreneur and founder of Resi, who told delegates: “If I have to choose a smart person to run this nation’s spreadsheets. I choose Rachel… if have to choose a leader to champion high growth and balance our books, again, I choose Rachel.”