Labour Conference 2025: Labour Conference Signals Change on Tax, Borders, and Education

Rachel Reeves speaking at Labour conference

The Labour Conference is well underway and while the media are concerned with former Cabinet Minister Andy Burnham, Mayor of Manchester, the real work of the conference is taking place behind the scenes. The meeting rooms and fringe events are filled with policy discussions that are shaping the future direction of the Labour government to deliver the change promised at the general election.

The biggest development of the day was the interview given by the Chancellor, Rachel Reeves, signalling that it is possible the government could increase taxes in the Autumn Budget. The Chancellor cited the huge change in circumstance facing the British economy including the tariffs from the United States, the need to massively increase defence spending to meet the threat from Russia as well as higher borrowing costs.

The Labour manifesto pledged that it would not increase income tax and VAT. All week a debate has taken place at the Labour Conference over how the government should meet its spending commitments, tackle the budget black hole and how to do so in a fair and equitable way. While the details of the budget are unknown at this stage it is now widely expected that the Chancellor will increase taxes, but that VAT will remain unchanged as this tax impacts most working people. 

The Home Secretary, Shabana Mahmood delivered a tough message to the Labour Conference on migration, even admitting that some members of the party will not like the measures she plans to impose. The apparent total lack of security at the border is regarded as one of the major reasons why Reform is doing so well in the opinion polls. The government has made tackling the small boat crossings its top priority in combating Nigel Farage.

While some in the party may feel uncomfortable about the tone and content of policy the new Home Secretary has the confidence and support of the Prime Minister in leaving no stone unturned to secure the border. Combined with tougher leave to remain conditions, the message from the government is clear, Labour is doing everything it can to become the party of strong and secure borders. 

Deputy Leadership contender and Education Secretary Bridget Phillipson announced the return of maintenance grants for students in her speech to the Conference. This will ensure that while at university, students will be able to focus on training and learning and not having to work every hour god sends. This follows the announcement earlier in the week that the government would expand the Free School Breakfast Club provision which ensures children in primary school get the best start to their day at school. The Chancellor also announced that every Primary School will have a library in another boost for education across the UK. 

The Labour Conference is very upbeat and there is a great display of party unity despite the difficult polling facing the government and the Prime Minister. Being attacked on all sides, Labour has come together in a great display of strength and unity with a new sense of resolve to face the threat from Reform and deliver upon the change we promised.

There is concern at the conference about our position, but that concern is being channelled into renewal and energetically delivering change rather than focussing inwards and talking to ourselves. Let’s see what the penultimate day at Conference brings.