UK treasury chief says ‘harsh global headwinds’ from wars and tariffs are harming the country’s economic outlook

Treasury Advisor Rachel Reeves told the annual conference in favor of the Labor Party that its economic plans should be “suitable for an uncertain world”, a hint that will raise taxes in its autumn budget on November 26.

“Last year, the world changed, and we are not immune to this change,” she told the BBC before speaking. “Whether the wars are in Europe and the Middle East, whether it is increasing to trade due to the customs tariff coming from the United States, whether the global cost of borrowing, we are not immune from any of these things.”

Since the end of 14 years of conservative rule in July 2024, the Labor Party has struggled to achieve the economic growth it promised. Inflation is still stubbornly high, diluted economic expectations, frustrating efforts to reform torn public services and reduce the cost of living.

During the elections, the Labor Party has pledged not to raise taxes on workers, but since it has raised fees for employers.

Reeves BBC told “she is determined not to increase these major taxes that workers pay,” and she stops excluding any rise at all.

In her speech, which was stopped due to repeated permanent qualifiers from hundreds of members of the Labor Party-Wahid protesters in support of the Palestinians-Reeves evaluated the sober of the country’s finance with a touch of optimism. The government’s investments in defense, transportation, energy and education have defined, claiming that they make a difference for millions of people.

She pledged to end the long -term youth unemployment, saying that every person under the age of 25 and who were unemployed for 18 months would be offered to be offered. One in eight years from 16 to 24 years in Britain-about a million people-are not currently in education, work or training.

Reeves also said that the government is working on a “ambitious agreement on the movement of youth” with the European Union 27 countries. British citizens have lost the right to move and work freely in the European Union when the country left the bloc in 2020.

Thousands of Labor Party members in Liverpool, northwest of England, for the party’s conference -a mixture of the Politics Forum and Pep’s footnote to which this year lacks in Pizazz.

The difficult right is a major concern

The Labor Party is behind the hard Reform Party in the United Kingdom in Nigel Faraj in polls, and some party members lose confidence in Prime Minister Kiir Starmer, although there may be four years until the upcoming elections.

Many gathered around Andy Bornham, the ambitious mayor of Manchester, who said on Sunday that the party is in “danger” and needs to change the direction.

Reeves took the goal of work, such as Burnham, who argue that the government should borrow more to spend more on public services. She cited the plan of former conservative Prime Minister Liz Toss 2022 for unprofible tax discounts, which sent the value of the pound’s decline and the cost of the ruling.

“When spending is out of control, when the market trust is lost … it is immediately felt at the increasing cost of necessities and high interest rates,” Reeves said.

The threat posed by reform is a higher issue among employment representatives at the four -day conference, which ends on Wednesday. There are five only five in the Farage party in the House of Commons, which amounts to 650 seats, and the Labor Party is more than 400.

Starmer described the battle between work and reform as “a battle for the spirit of this country.” On Sunday, Faraj was accused of sowing a department with plans by reforming to deport immigrants in the United Kingdom legally. Starmer said that such a policy would be “racist” and “immoral”.

The UK government has tightened its own language. The Minister of the Interior, Shabana Mahmoud, told the conference that the government should question some “legal assumptions and restrictions” about immigration.

She said she plans to raise lawyers who should meet to obtain permanent residence. According to the proposals, people will have to obtain a “high level” of English, and there is no criminal record and return to their societies to obtain the right to settle in the United Kingdom

She said: “Unless we have control of our borders, and until we can determine who comes and who must leave, we will never be an open, tolerant and generous country that I all know we believe in.”

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