Labour Doesn't Deserve Next Election Victory Without Change- Reeves

Rachel Reeves has said Labour doesn’t “deserve” to win the next election unless it delivers meaningful change, acknowledging that some voters are already disillusioned with the party’s actions since taking office.

Speaking at the Edinburgh Festival Fringe, the Chancellor admitted that recent government U-turns on winter fuel payments and welfare policy had frustrated supporters. However, she insisted she’s had to contend with tough economic conditions inherited from the Conservatives, while also trying to increase spending on overstretched public services.

Reeves said, “People voted Labour because they wanted change. They were unhappy with how the country was being run. They know we inherited a difficult situation and that fixing it isn’t easy, but they’re impatient — and so am I. Still, I have to ensure the finances add up, which means we can’t do everything at once, even if we want to.”

Addressing the audience at the Edinburgh International Conference Centre, she emphasised that Labour must deliver on its promises — or it won’t deserve re-election in 2029.

On the subject of taxation, Reeves said the current balance was “about right,” despite increasing pressure from within the party to consider a wealth tax. Former minister Anneliese Dodds pointed to new findings from the Wealth Tax Commission, saying they had shifted the debate.

Reeves responded, “You’re always going to let some people down. No one wants to pay higher taxes, and everyone wants better public services — but borrowing comes at a cost. I think most people understand these limits, even if they don’t like them. I’m the one responsible for keeping the finances in check.”

Looking ahead to next year’s Scottish parliamentary elections, Labour faces a drop in support. Polling in June placed it in third position with 19%, behind the SNP on 29% and Reform UK on 22% — a contrast to last year’s post-election figures that had Labour neck and neck with the SNP.

Still, Labour had a glimmer of success by winning the Hamilton, Larkhall and Stonehouse by-election in June.

But setbacks continue. The closure of the Grangemouth oil refinery in April, which cost 400 jobs, hit Labour’s standing. Brian Leishman, a Labour MP who had pushed to keep it open, was later suspended for voting against welfare reforms.

The UK government’s ban on new North Sea drilling has also drawn criticism, with some claiming it is harming the economy in north-east Scotland. Still, Reeves defended Labour’s investment record in the region, highlighting a £200 million carbon capture project in Aberdeenshire that has been welcomed by industry leaders.

She acknowledged that the party’s windfall tax on oil and gas companies has not been popular with the sector, but argued that it was necessary: “I understand they don’t like paying more tax, but you can’t really have that level of investment without raising revenue from somewhere.”