Labour does not deserve to win next election without change, Reeves says
Labour does not “deserve” to win the next election if it does not change the country, Rachel Reeves has said, as she acknowledged some voters were disappointed with the party’s record since entering government.The chancellor said she understood the unhappiness felt by some voters towards a government that has U-turned on winter fuel allowance and welfare policies in recent months.Reeves claims she has had to grapple with financial challenges inherited from the Conservatives, while increasing spending to repair public services.Speaking to broadcaster Iain Dale at the Edinburgh festival fringe, she said: “The reason people voted Labour at the last election is they want to change and they were unhappy with the way that the country was being governed.“They know that we inherited a mess.
They know it’s not easy to put it right, but people are impatient for change.“I’m impatient for change as well, but I’ve also got the job of making sure the sums always add up – and it doesn’t always make you popular because you can’t do anything you might want to do.You certainly can’t do everything straight away, all at once.”She told the audience at the Edinburgh International Conference Centre that Labour needed to enact the change that voters wanted.She added otherwise the party did not “deserve” to win the next general election in 2029.
Reeves said the government had the balance “about right” on taxes, in a week where she faced renewed calls from Labour politicians for a wealth tax.Former Foreign Office minister Anneliese Dodds, who briefly held the shadow chancellor position for Labour in opposition, said ministers should consider evidence set out by the Wealth Tax Commission, which she said had “changed the debate” on the policy.Reeves said: “Of course you’re going to disappoint people.No one wants to pay more taxes.Everyone wants more money than public spending – and borrowing is not a free option, because you’ve got to pay for it.
“I think people know those sort of constraints but no one really likes them and I’m the one that has to sort the sums up.”The party faces difficulties ahead of the Scottish parliament elections in Holyrood next year.It has slipped backwards into third place, according to opinion polling, a year after it was neck and neck with the SNP.Polling in June showed it on 19%, behind the SNP in 29% and Reform UK on 22%.This is in contrast to a survey carried out a month after Labour’s general election win last year, which showed the party just ahead of the ruling SNP, with Reform languishing far behind.
There have been some signs of promise, however, as Labour won the Hamilton, Larkhall and Stonehouse byelection for the Scottish parliament in June.The closure of the Grangemouth oil refinery before its transition to an import-only terminal caused unpopularity for Labour.About 400 jobs were lost as a result of it shutting in April.The MP who had championed it being kept open, Brian Leishman, has since been suspended by Labour for rebelling over welfare reform.Meanwhile, the Labour government in Westminster’s ban on new drilling in the North Sea has been accused of causing “strangulation” of the economy in north-east Scotland.
However, Reeves told the audience in the Scottish capital that the government was further investing in Scotland.She said the £200m investment in carbon capture technology in Aberdeenshire had been welcomed by the industry.She said she also understood Labour’s windfall tax on oil and gas were not welcomed by the sector.“I can understand that that’s extra tax that the oil and gas sector are paying but you can’t really have one without the other,” she said.Reeves also commented unfavourably about Jeremy Corbyn after being asked about him by Dale, predicting the public will reject his new party and have the same reaction to him as it did twice before.
Corbyn launched the political party with former Labour MP Zarah Sultana.It still does not appear to have a name but has been marketed as “Your Party”.The former Labour party leader has vowed it will “take on the rich and powerful”.Asked about whether the new party could eat into Labour’s support by becoming a “Reform of the left”, the chancellor said: “Jeremy Corbyn has had two chances to be prime minister and I think the country gave their verdict, most recently in 2019 when Labour had its worst result since 1935.“If he wants to give it another go, be my guest.
I think the voters will have the same reaction.”Asked by Dale if Labour was being complacent about the new political group, she said: “It’s not being complacent.He tried to destroy my party and he can now go set up his own party.“The country has rejected him twice.The bloke’s got a big ego.
He can have another go but I think the country will have the same verdict.”Her comments prompted some of the biggest cheers of her chat with Dale.Corbyn has said that more than 500,000 people had signed up to the movement in less than a week.The figure was dismissed by Reeves, who told the crowd in Edinburgh that Labour minister Jess Phillips had received an email stating she had signed up to the party.PA Media contributed reporting This article was amended on 4 August 2025.
The person Rachel Reeves said had received an email stating she had signed up to Jeremy Corbyn’s new party was Jess Phillips, not Ellie Reeves.
BP begins costs review as quarterly profits of £1.77bn beat forecast
The oil and gas group BP is launching a fresh cost-cutting scheme, despite reporting better-than-expected profits, as it tries to do more for its shareholders to fend off pressure from activist investors.The fossil fuel company said it would begin a fresh review of its business when its new chair, Albert Manifold, joins the board in September.BP reported a rise in profits to $2.35bn (£1.77bn) between April and June, a drop of 15% on the same period a year earlier when the company benefited from higher oil and gas prices
Chinese carmakers led by BYD report big rises in UK sales in July
Chinese carmakers led by BYD reported big jumps in UK sales last month, despite a declining overall car market, including a 59% slump in sales from their electric vehicle rival Tesla.BYD sales quadrupled year on year to reach 3,200 in July, even as overall sales of all types of car declined by 5% to 140,000, according to data published on Tuesday by the Society of Motor Manufacturers and Traders (SMMT), a lobby group.The car industry has said it is struggling with a weak economy, which is holding back consumer spending.At the same time, carmakers are waiting for clarity on which models will be eligible for subsidies of up to £3,750 under a new grant scheme announced by the UK government last month. The government on Tuesday said that four Citroën models would be eligible for the grant
UK services sector has biggest fall in orders for nearly three years
The UK’s dominant service sector has reported its biggest drop in new orders in almost three years in July, adding to pressure on the Bank of England to cut interest rates on Thursday.Sounding the alarm over a loss of momentum amid a worsening global economic backdrop, the data provider S&P Global Market Intelligence said total new work in the sector, which accounts for about 80% of the economy, eased to the slowest pace since November 2022.The survey of 650 companies in the sector, which includes finance, IT, communications and property but excludes retail, is closely watched by the Bank and the government for early warning signs from the economy.Threadneedle Street is widely expected to cut borrowing costs at its next policy meeting on Thursday from the current level of 4.25% amid growing concerns about the strength of the economy
Domino’s Pizza profits dive as people cut back on takeaways in UK
Domino’s Pizza said the takeaway market had “become tougher” as it blamed weaker consumer confidence in the run-up to the autumn budget and rising wage costs for lower-than-expected sales and a slump in profits.After a drop of nearly 15% in half-year profits, the company now expected full-year underlying profits of between £130m and £140m, about £6m below analysts’ expectations.Domino’s said it was gaining market share but its franchise partners were being more cautious about opening new outlets because of higher employment costs. Employers’ national insurance payments and the legal minimum wage were both increased in April.The company opened 11 stores in the six months to the end of June, fewer than expected, and is now forecasting openings in the mid-20s for the full year
Neil Woodford and his investment firm fined almost £46m over fund failings
The former star stock picker Neil Woodford and his investment management company have been fined almost £46m by the UK’s financial regulator over the collapse of his popular equity fund.The Financial Conduct Authority (FCA) has given Woodford a penalty of £5.89m and banned him from holding senior manager roles and managing funds for retail investors and fined Woodford Investment Management (WIM) £40m.The penalties are for failures in their management of the flagship Woodford Equity Income Fund (WEIF), which closed in October 2019 after investors, including many ordinary retail customers, rushed to withdraw money in response to the poor performance of a number of company investments, including some hard-to-sell illiquid assets.The value of the fund fell from a high of more than £10
Guinness owner Diageo’s profits slump as it warns of $200m Trump tariff hit
The world’s biggest spirits company, Diageo, has revealed a slump in annual profits and expanded its cost-cutting plan as it searches for a new boss after the resignation of the chief executive, Debra Crew.The FTSE 100 company, which owns brands including Guinness, Johnnie Walker whisky, Gordon’s gin and Smirnoff vodka, reported a nearly 28% fall in operating profit in the 12 months to the end of June compared with a year earlier.The drinks maker also upped its target for cost savings from £500m to £625m. The interim CEO, Nik Jhangiani, said the savings were “not about job cuts”, adding that while some roles would go, the overall workforce could still increase.The figures come weeks after the surprise announcement that the group had begun the hunt for a successor to Crew, who it said had stepped down “by mutual agreement”, after a period of investor disquiet over its declining share price
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