Reeves defends UK’s economic record, unveils plan to tackle youth unemployment

UK Chancellor, Rachel Reeves, has defended the government’s handling of the economy over the past 15 months, insisting that Britain currently has the “fastest growth in the G7,” despite sluggish GDP growth of 0.3% in the last quarter.

Speaking in a series of BBC interviews ahead of her address at Labour’s annual conference in Liverpool, Reeves said she was “proud” of the government’s achievements so far, citing interest rate cuts, new trade deals, and rising wages. However, she admitted “there is more to do” to strengthen business confidence and deliver long-term stability.

Reeves also unveiled a new initiative aimed at abolishing long-term youth unemployment. Under the scheme, young people who have been out of work or education for 18 months will be offered a guaranteed paid work placement. Those who refuse the opportunity risk losing their benefits.

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The Chancellor said the move builds on Labour’s “youth guarantee” policy, which promises every 18 to 21-year-old access to training, apprenticeships, or job support. “We can’t let a generation of young people face the devastating consequences of unemployment at the start of their careers,” she said.

Meanwhile, Home Secretary Shabana Mahmood announced tougher rules for migrants applying for indefinite leave to remain. Under the new plan, applicants must demonstrate a higher level of English, maintain a clean criminal record, and engage in community volunteering. Labour also intends to extend the qualifying period for settlement from five to ten years.

The government’s announcements come as Reform UK, currently leading in opinio