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Labour is in denial about the economy

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03.10.2025

LIVERPOOL, ENGLAND – SEPTEMBER 29: Chancellor of the Exchequer Rachel Reeves speaks on stage while Prime Minister Keir Starmer listens during day two of the Labour Party conference at ACC Liverpool on September 29, 2025 in Liverpool, England. The Labour Conference is being held against a vastly different backdrop to last year when the party had swept to power in a landslide general election victory. A year on and polling shows three quarters of Britons (74-77%) say they have little to no trust in the party on the cost of living, immigration, taxation, managing the economy, representing people like them, or keeping its promises. (Photo by Dan Kitwood/Getty Images)

The recent Labour conference as an exercise in denial, revealing a party plagued by internal divisions and lacking a coherent economic plan, says Helen Thomas

As the Labour conference drew to a close, one word dominated the mood: denial. Denial of the scale of Britain’s economic challenges. Denial of the fault lines within the party and the country. Denial about what must be done to bridge them.

This year’s gathering was therefore less a triumphant reset and more a masterclass in self-delusion. Beneath the public bravado lurked deeper fractures: between moderates and ideologues, between ambition and pragmatism and between political theatre and fiscal reality.

Party conferences often lean rhetorical, mobilising supporters by drawing contrasts with opponents and casting someone else as the enemy. But this year, Labour took things further. Rather than engage with internal dissent or escalate self-criticism, speakers opted for theatrical confrontation. We heard ministers urge attendees to “grind........

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