Chancellor Rachel Reeves has announced a series of changes in her keynote speech at the Labour Party Conference. Ms. Reeves emphasized that Labour is a party that represents working people and not one of protest. Despite being interrupted by a protester, she outlined a more optimistic outlook for the UK’s economy. She assured that there will be no return to austerity and pledged a budget with real ambition to fix the foundations and rebuild Britain.
Key changes introduced by Chancellor Reeves include the implementation of free breakfast clubs in England starting from April next year. This initiative aims to invest in young people, reduce child poverty, and boost the economy. Additionally, a new Covid Corruption Commissioner has been appointed to assess all Covid-era PPE contracts before any abandonment or waiver, preventing unnecessary spending.
Furthermore, the government’s Industrial Strategy will prioritise growing the economy, unlocking investment, and ensuring every part of the country benefits. The strategy will focus on making Britain a clean energy superpower, accelerating towards net zero, and fostering regional growth.
Among the reforms is an overhaul of HMRC to improve the UK’s tax system. Plans include launching a consultation on e-invoicing to streamline processes, reduce errors in tax returns, and enhance customer service. Minister James Murray has been appointed as the Chair of the HMRC Board to oversee key priorities of closing the tax gap, modernising, and improving customer service.
Moreover, a Digital Transformation Roadmap will be published next spring to establish HMRC as a digital-first organization. The roadmap will feature measures to ensure digital inclusion and support for customers who are not yet digitally proficient. To support these initiatives, HMRC is expected to recruit an additional 5,000 compliance staff to help narrow the tax gap.
These changes represent a significant shift in economic policies and reflect Chancellor Rachel Reeves’ vision for a more inclusive and forward-looking economy in the UK.