RACHEL Reeves today laid the groundwork for a brutal Autumn Budget as she warned of making “harder choices” on tax and spending.
The Chancellor pre-empted the possibility of more levy hikes as she complained that “harsh global headwinds” have made damage to the economy “ever clearer”.

Rachel Reeves delivers her keynote address to the Labour faithful in Liverpool[/caption]
Ms Reeves announced major new plans to crack down on youth unemployment[/caption]
The Chancellor shakes hands with Matt Williams, a welder at Hinckley Point C, who introduced her speech[/caption]
Addressing the Labour faithful at party conference in Liverpool, Ms Reeves said: “In the months ahead, we will face further tests, with the choices to come made all the harder by harsh global headwinds, and the long-term damage done to our country, which is becoming ever clearer.”
The Chancellor used large chunks of her speech to make jabs at “dangerous” Nigel Farage.
She accused the Reform leader of being “in bed with Vladimir Putin” and the “single greatest threat” to the livelihoods of Brits.
And having a pop at Sir Keir Starmer‘s rival and wannabe Labour leader Andy Burnham, Ms Reeves added: “I do know that there are still people who peddle the idea that we can just abandon economic responsibility, cast off any constraints on public spending.
“They’re wrong. Dangerously so.
“And we need to be honest about what that choice would mean.”
The Chancellor vowed to fund a library in every single primary school in the country.
She said: “I remember as a kid my school library was turned into a classroom because there were more students than there was space.
“I am committing here today to providing a library in every single school in England by the end of this parliament.”
And Ms Reeves announced that £400m of taxpayer cash has been recovered from Covid fraudsters.
The Chancellor also backed the future of British Steel, hailing Labour’s investment to save shipbuilding and Jaguar Land Rover.
She said: “We could do what the Tories did, and stand idly by while jobs and industrial capacity were lost, or we could choose a different path, to take control of that company in the national interest.
“That was not just an economic choice but a test of our conviction, our patriotism and our Labour values.”
The Chancellor also announced that jobless youngsters will face having benefits stopped if they do not take up a new government offer of paid work.
Ms Reeves wants to cut the welfare bill with a Youth Guarantee scheme to stop them going onto a life on the dole.
Every young adult who has been on Universal Credit for 18 months without earning or learning will be given a paid work placement.
Youths will get a guarantee of either a place in a college or an apprenticeship to learn a trade.
The plans will apply to 18 to 21-year-olds.
Ms Reeves said: “I will never be satisfied while too many people’s potential is wasted, frozen out of employment, education, or training.
“There’s no defending it. It’s bad for business, bad for taxpayers, bad for our economy, and it scars people’s prospects throughout their lives.”
Nearly one million youngsters aged 16-24 are Neets — not in education, employment or training.
This accounts for 12 per cent of the age group, having risen by almost a third in the past four years.

Rachel Reeves was heckled by a pro-Palestine activist during her speech[/caption]
The protestor was quickly shut down by the Chancellor[/caption]