Rachel Reeves is set to announce a 'youth guarantee' aimed at reducing long-term youth unemployment by providing guaranteed paid work to young people on universal credit benefits for 18 months or more, emphasizing opportunity and fairness.

The initiative is rooted in core principles of duty, contribution, and fair reward, aiming to build a society where talent from all backgrounds can thrive.

Reeves's speech also highlighted broader themes of contribution and opportunity, positioning the Labour agenda around social duty and economic fairness amid upcoming budget decisions.

Economic forecasts have been downgraded, with the Office for Budget Responsibility expected to cut UK's productivity growth projections, influencing government fiscal planning and sparking internal Labour debates on fiscal rules and tax policies.

The proposed youth scheme has received support from the Federation of Small Businesses but faces criticism from opposition figures like Shadow Chancellor Sir Mel Stride, who argues recent tax hikes on employers contradict Labour's policies.

Funding for the scheme remains a concern, especially as Reeves aims to address a £30 billion financial gap without raising main taxes such as income tax, VAT, or National Insurance.

Reeves also announced plans to support public services, including funding libraries across England, bolstering national security through domestic steel and shipbuilding, and addressing energy security.

The scheme involves private companies subsidizing wages, with funding from existing government budgets, and full details to be revealed in the November Budget.

Reeves announced a crackdown on Covid-related fraud with a 'hit squad' to target fraudsters and impose fines up to 100% of stolen amounts, linking economic strength to domestic manufacturing and security.

The policy aims to improve Labour's public image and electoral prospects, especially as polls show the party trailing behind Reform UK.

Reeves linked her plan to her vision of a fair Britain based on contribution and hard work, amid debates over welfare measures like the two-child benefit cap.

Reeves reaffirmed Labour's pledge not to increase taxes on working people, emphasizing support for employment and economic growth despite global uncertainties.