'Our country is at a crossroads': Rachel Reeves sets out Labour's plans for 'stability and security'

ITV News' Political Editor Robert Peston sat down with the would-be Chancellor if Labour won the general election

The shadow chancellor has said Britain is "at a crossroads" in which it can decide whether to stick with more "chaos" with the Tories, or "stability and security" with a Labour Government.

Rachel Reeves told ITV News Political Editor Robert Peston her priorities would be to grow the economy and improve living standards if she were to land the top job at the Treasury.

She acknowledged that should Sir Keir Starmer get the keys to Number 10, Labour will have to face challenges "into years to come" but, she is undeterred and remains "optimistic".

When pressed by Peston on why she has not been bolder in plans, Ms Reeves replied: "Our country is at a crossroads there will be a choice at some point this year about what direction we go in.

'It's a choice between another five years of chaos and instability with the Conservatives, like we've had for the last few years, or stability and security'

"It's a choice between another five years of chaos and instability with the Conservatives, like we've had for the last few years, or stability and security which is what I offer.

"That is built on two key things: first of all, the institutional reform but also the comprehensive plan that I've worked on with business to grow our economy to improve living standards. Those will be my priorities if I become chancellor of the exchequer."

When put to her that there was no "real plan" to boost the AI industry, Ms Reeves said: "I’m an optimist, I see two big opportunities - opportunity to bring jobs to Britain in industries of the, future designing and regulating some of these technologies.

"But there's a big opportunity here in how we run our public services… cancer, personalised learning in classroom, detecting tax and benefit fraud.

"I see the role of AI and tech as being a positive one but absolutely you're right, it is important we make sure young people and people already working have chance to reskill so that they can make the most of their talents."

Ms Reeves' comments come as she prepares to set out her vision for the economy in a key pre-election speech to business and finance leaders at the annual Mais Lecture this evening.

The shadow chancellor, and former Bank of England economist, will pledge to a Labour Government will utilise planning reform, strengthen devolution and lay out a “new industrial strategy”.

Ms Reeves claims Labour will also plan to create half a million jobs across the UK through a new National Wealth Fund, to invest in growing industries - one of those being AI.

The shadow chancellor said she would propose reforms to the Treasury that will increase the role of the department’s Enterprise and Growth unit.

Some economists believe it would be more beneficial to instead create a Growth Department with a secretary of state championing the measures needed to boost the economy - but Ms Reeves argued this was tried under George Brown's Department of Economic Affairs in the 60s and ultimately failed.

Ms Reeves argued there is currently not enough of a focus on a "serious, comprehensive plan" for growth and the job of the Treasury is to "always make sure all the sums add up", adding: "That remit of the treasury I feel has been downgraded... I want to bring back that emphasis and sense of purpose to Treasury if I become chancellor."

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Earlier, Jeremy Hunt claimed Labour’s economic policy is a “black hole filled with platitudes” as he faced Ms Reeves on Tuesday at Treasury questions.

Facing calls to explain how scrapping national insurance would be funded, the chancellor hit out at the opposition and questioned where Labour would find “literally billions of pounds to fund unfunded spending pledges” on the NHS and decarbonisation.

The debate came after Mr Hunt used his spring budget to announce his ambition to scrap national insurance, prompting Labour warnings that it would create a “£46 billion hole” in funding earmarked for the state pension and NHS.

In her speech this evening, Ms Reeves is to promise that a Labour Government would seek to bring about a “new chapter in Britain’s economic history".

She will say the Treasury must be ready to “get to work from day one” to improve economic growth through stability, investment and reform.

“If we can bring together public and private sectors, in a national mission – directed at restoring strong economic growth across Britain," she is to say.

“A new chapter in Britain’s economic history. And unlike the 1980s, growth in the years to come must be broad-based, inclusive and resilient.”

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