On Monday, Finance Minister Rachel Reeves will assure the British public that there will be no return to austerity or widespread spending cuts, despite previous

warnings of a difficult budget aimed at stabilizing the economy's foundations.

Since Labour's victory in the July elections, Reeves has suggested that taxes might increase in her first budget on October 30, due to what she described as a £22 billion ($29 billion) gap in public finances.

She also announced that millions of pensioners would no longer receive winter fuel payments, a decision the government says it made reluctantly. However, this move has been criticized by trade unions and other traditional Labour supporters.

During her keynote speech at the Labour Party conference in Liverpool, Reeves is expected to reaffirm her commitment to making necessary decisions to provide the stability she believes is essential for businesses to invest confidently and for families to plan their futures.

"There will be no return to austerity. Conservative austerity was a harmful choice for our public services, as well as for investment and growth," Reeves will say, according to excerpts from her speech.

"We must address the Conservative legacy, and that means making tough decisions. But we will not let this dampen our ambition for Britain."

Amid criticism that Reeves and Prime Minister Keir Starmer have adopted an overly pessimistic tone—especially following controversy over donations, which has overshadowed Labour's first election victory in 14 years—Reeves will signal optimism for the future, despite the challenges she inherited.

"I see the opportunities ahead, if we make the right decisions now. Stability is the critical foundation upon which all our ambitions can be built," she will say.

Reeves will also reaffirm Labour's manifesto pledges not to increase income tax, National Insurance contributions, value-added tax, or corporate tax. Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.