The Road Ahead: where next after the Labour Conference?

Labour’s first conference as the governing party in more than a decade was a little more muted in atmosphere than many might have suspected. Rather than flush with the thrill of election victory, the conference felt slightly weighed down as the realities of governing in hugely challenging times sink in.

It was also a conference fairly light on meaty policy discussion, given its proximity to the new Labour government’s first Budget. Chancellor Rachel Reeves and the entire frontbench were incredibly cautious about letting anything slip before the fiscal event, meaning that a lot of the key announcements at this conference were essentially reiterations of existing government policy.

However, the Chancellor did drop a very broad hint in her conference speech that the government is exploring a revision to Labour’s much-vaunted fiscal rules, to facilitate greater investment in the UK economy. This could involve revising the way the government’s five-year debt rule is reviewed, to free up more money to invest in the government’s ambitious programmes of house-building, green energy infrastructure development, transport and NHS upgrading. She also announced that the government is set to reveal the details of its industrial strategy next month. The Guardian reported that the government will publish a green paper alongside the Budget and a related consultation in autumn, before a “full launch” of the industrial strategy policy in 2025.

Meanwhile, tax change rumours continue to abound, with little concrete information about just what else might appear in Reeves’ first Budget as Chancellor. One thing that does look certain is that Labour will legislate for its ambitious new deal for working people next month. Business Secretary Jonathan Reynolds told a Labour Conference fringe event that some of the measures Labour is proposing will be consulted on before their implementation.