Rachel Reeves has committed to increasing government spending while firmly stating that there will be no return to austerity measures. This announcement comes as the Chancellor faces mounting pressure from certain Labour MPs who are concerned about the government's overly pessimistic outlook. In her remarks ahead of her speech at the Labour conference, Reeves emphasized that the public is willing to make sacrifices to stabilize the economy. She highlighted the potential benefits that could arise if the fiscal situation improves, describing it as a "prize" worth striving for. However, she also acknowledged the possibility of real-term cuts affecting some government departments, leaving room for interpretation regarding the extent of spending adjustments. Reeves' stance reflects a balancing act between maintaining fiscal responsibility and addressing the concerns of party members who are eager for a more optimistic approach to governance.