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.

Rachel Reeves, the Chancellor, has dismissed the prospect of returning to austerity measures but has not confirmed that government departments will be shielded from real-terms budget cuts. In a recent interview on the Today programme, Reeves addressed her decision to accept clothing donations worth £7,500 during her time in opposition. She acknowledged that some may find it unusual for politicians to receive support for clothing expenses. Reeves explained that a close friend, Juliet Rosenfeld, offered to help finance her office's clothing needs for her campaign activities and significant events while she served as shadow chancellor. She emphasized that this was not something she intended to continue as a government minister, but it was beneficial during her time in opposition. Reeves highlighted the importance of not relying on taxpayers to cover the majority of political campaigning and research costs, which necessitates donations from various sources, including party members, supporters, and successful individuals wishing to contribute. She expressed gratitude for this support, noting that it played a crucial role in the party's current position in government. Additionally, unions such as Unite and the Communication Workers Union (CWU) have proposed motions for discussion, which were initially scheduled for Monday afternoon but have now been postponed to Wednesday morning, with strong backing anticipated from other unions.

**Keir Starmer Faces Challenges as Donations Scandal Overshadows Labour Conference** As the Labour conference unfolds, the ongoing donations scandal continues to cast a shadow over Keir Starmer's leadership, prompting calls from allies for a shift in strategy. During the election campaign, Starmer adopted a clear communications strategy: focus on Labour's strengths and avoid being drawn into the Conservatives' agenda on issues like culture and taxation. The mantra was to stay on message and rise above distractions. However, this approach works best when a party is ahead in the polls. Even during the campaign, there were moments when sticking rigidly to this strategy proved problematic. Now, as the party grapples with the fallout from the donations controversy, the need for a reassessment of tactics has become increasingly apparent. The situation calls for a more adaptable approach, as the current strategy may not be sufficient to navigate the challenges ahead.

Angela Rayner has firmly rejected allegations that she violated rules regarding donations, asserting that she has adhered to all necessary regulations. The Deputy Prime Minister acknowledged the concerns of voters who are upset about the donations received by her and other government ministers, emphasizing that a comprehensive discussion on political funding is needed to address these issues. Rayner specifically addressed claims related to her acceptance of gifts, including accommodation during a holiday in New York, stating that she has fulfilled all required declarations. She expressed understanding of the public's frustration, saying, "I get that people are angry, I get that people are upset."