Rachel Reeves has called on workers to return to the office, highlighting the benefits of face-to-face collaboration, as she prepares to set out Labour’s economic vision at the party conference in Liverpool this week.
In a candid way interview with De TijdChancellor rejected the idea of remote working, saying she is leading by example and highlighting her experience of working late into the night at the Treasury after Labour’s election victory.
Reeves, who is tasked with tackling the £22 billion hole in the public finances, rejected any suggestion of short-term solutions. Instead, she focused on creating a long-term environment for investment, arguing that stability is key to economic growth. Her upcoming speech will outline Labour’s vision for a better future, despite the sacrifices expected in the upcoming Budget.
While the Chancellor warned of the need for tough decisions, she rejected calls for a tailor-made wealth tax and remained steadfast in her refusal to overturn the controversial cap on the two-child benefit. She also pushed back on suggestions that Labor had ‘talked down’ the economy, arguing that businesses had ‘nothing to fear’ from its pro-growth agenda, which aims to balance workers’ rights with economic development .
Reeves also hinted that the October 30 budget would provide additional funding for the NHS as she tackled the challenge of reducing long waiting lists for healthcare services. However, she warned that there would be no magic wand to fix public finances, stressing the importance of being realistic about what the government can afford.
In an apparent split with Business Secretary Jonathan Reynolds, Reeves rejected the idea that remote working motivates employees, insisting that coming together in the office produces better ideas. Pointing to her own actions at the Treasury Department, she said: “We didn’t do it on Zoom… people coming together, promoting ideas.”
As Labor approaches its first major party conference since coming to power, Reeves is keen to focus on the future despite ongoing rows over the prime minister and other senior figures accepting free gifts and clothes from donors. In an attempt to draw a line under these controversies, Reeves stated that she and Labor leader Sir Keir Starmer would stop accepting such gifts.
The chancellor, who has no plans to introduce new taxes such as a wealth tax, is committed to restoring the country’s financial stability. This includes efforts to crack down on fraud and errors in the Social Security system, which have cost the Treasury billions. Labor is also exploring ways to tackle long-term illness, with Reeves citing that Britain is one of the few countries where economic inactivity has increased since the pandemic.
As the government prepares for its investment summit in October, Reeves wants to show that Britain is ‘open for business’ and will attract global investment to revive the economy. However, tension over Labour’s proposed reforms to workers’ rights remains, with businesses expressing concerns about the potential economic impact of the Employment Rights Bill.
Despite the challenges, Reeves remains confident in Labour’s economic plan. “We believe that being pro-business and pro-worker are two sides of the same coin,” she said.