Reeves defends winter fuel allowance cut, saying she will not 'duck' difficult decisions

Rachel Reeves told the Labour Party conference she was optimistic about the UK's economic future, and said there would be no return to austerity, as ITV News Political Editor Robert Peston reports

Chancellor Rachel Reeves has defended her decision to cut the winter fuel allowance for millions of pensioners during her speech at Labour conference.

She blamed the decision on the "Tory legacy," saying "that's why we made the choice to means test the winter fuel payment."

"I know not everyone - in this hall, or in the country - will agree with every decision I make, but I will not duck those decisions", she insisted.

The government are under mounting pressure over their decision to scrap the benefit for millions of pensioners, with major trade unions demanding a U-turn on the policy.

A vote on the issue will take place on Wednesday, after Unite and the Communication Workers Union (CWU) put forward motions which had been due to be debated on Monday afternoon, with strong support expected from other unions.

The winter fuel payment was designed to ensure pensioners could afford to pay their energy bills during the cold winter months. Previously all pensioners could claim it, but now it will only be available to pensioners on certain benefits.

One pensioner protesting outside the conference said the government have "attacked the poorest in society."

Speaking as part of a group of retired Unite members, Steve Millward said: "I've worked for 50 years, paid my taxes, paid into the system so the syste could look after me, and they've failed me."

In a shift in tone from her previously downbeat messaging on the economy, Reeves insisted there's a "huge prize" on offer if the new government can restore stability.

Reeves said “tough decisions” on the public finances are needed to prevent economic ruin, but she promised there would be “no return to austerity”.

Soon after starting her speech, Reeves was interrupted by a heckler, protesting about arms sales to Israel.

The protestor could be heard saying "we are still selling arms to Israel", before he was bundled out of the conference hall by security.

In response to the interruption, Reeves said "this is a changed Labour Party", insisting it is "not a party of protest".

The campaign group Climate Resistance have claimed responsibility for the protest, saying the activists unfurled a banner reading "still backing polluters, still arming Israel - we voted for change”.

A spokesperson said: “Labour promised us change - instead we’re getting more of the same. The same pandering to the fossil fuel industry; the same arms licences that are fuelling a genocide in Gaza, and the same austerity that sees the poorest hit hardest."

Reeves announced hundreds of primary school children will receive free breakfast clubs in April, ahead of the national rollout of the scheme Labour promised in their manifesto.

“Today, I can announce that that will start in hundreds of schools for primary school-aged pupils from this April ahead of the national rollout, an investment in our young people, an investment in reducing child poverty, an investment in our economy", she told the conference.

The chancellor also promised action to tackle tax dodgers and claw back money from flawed Covid-era contracts.

Looking ahead to her budget on October 30, Reeves said, "this will be a budget with real ambition."

"We must deal with the tory legacy, and that means tough decisions", she told delegates, "but I won’t let that dim our ambition for Britain."

In a signal of Labour keeping its manifesto commitments, Reeves will promised not to raise national insurance, income tax or VAT.

She also said corporation tax is to remain at its “current level for the duration of this Parliament”.

Her speech comes with Labour still facing questions about “freebies” of clothing, holidays, concert tickets and football match hospitality accepted by Ms Reeves, Sir Keir Starmer and Angela Rayner.

Questioned about her own acceptance of clothing gifts, Reeves said "I can understand why people think it's a bit odd" that politicians accept gifts.

Reeves said the donation of some clothes from a friend helped her to get "ready for the election campaign."

The chancellor insisted while she accepted freebies during her time in opposition, she never intended to accept gifts once she was in government.

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Jeremy Hunt, the shadow chancellor, contested Labour’s assessment of the UK economy, and claimed Reeves had “already damaged the UK’s international reputation by talking down her inheritance in order to score political points”.

He added: “If she believes in growth, where is the plan? People are beginning to suspect there may not be one.

“If all we get in the Budget is tax rises and employment laws that deter investment and job creation she will have thrown away a golden opportunity.”

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