Blow for Sunak as former Bank of England boss endorses Starmer and Reeves – live

The former Bank of England governor Mark Carney has endorsed Labour in a shock coup for Keir Starmer and his shadow chancellor Rachel Reeves, Adam Forrest reports.

In a surprise video shown at the party’s conference after Ms Reeves’ speech, Mr Carney praised her as a “serious economist” and said it was “beyond time” for a Labour government.

There were gasps in the auditorium as a video showed Mr Carney’s endorsement. He called Ms Reeves is “a serious economist” who “understands the big picture” – pointing out that she started her career at the Bank of England.

The senior figure, governor between 2013 and 2020, added: “Crucially she understands the economics of work, of place and family. It is beyond time we put her energy and ideas into action.”

Labour’s shadow defence secretary John Healey has told the conference that “the greatest risk to UK defence is another five years of the Conservatives”, Adam Forrest reports.

Mr Healey used to his speech to accused the Tories of underfunding the military. “In 13 years, they’ve cut the army to its smallest since Napolean, scrapped one in five Royal Navy ships, taken 200 aircraft out of RAF service.

He also said they had “left forces families living in damp housing and let morale fall to record lows” while failing to fix the “broken defence procurement system”.

Labour will provide catalytic investment through a new national wealth fund, Rachel Reeves has said.

The shadow chancellor said: “Labour will tax fairly and spend wisely. But I must tell you, you cannot tax and spend your way to economic growth. The lifeblood of a growing economy is business investment.

“It is investment that allows businesses to expand, create jobs and compete with international rivals with new plants, factories and research labs coming to Britain, not France or Germany or America.”

She added: “So, Labour will aim to restore investment as a share of our GDP to the level that it was under the last Labour government and to bring us in line with our peers, adding an additional £50 billion to our GDP every single year, worth £1,700 for every household in Britain.

“But we know, too, that asking businesses to do all the heavy lifting while government steps back is not an option. As our competitors understand, there is a role for governments in encouraging and derisking investments in new and growing industries.

“So, we will provide catalytic investment through a new national wealth fund. Financial responsibility means knowing when not to spend, but it also means making sure that when you invest, you get the bang for your buck. So, we will set that new national wealth fund a target: for every pound of investment that we put in, we will leverage in three times as much private investment.”

Shadow chancellor Rachel Reeves told the Labour Party conference: “Just look at the fate of HS2, a major transport project lost, another promise broken because the government could not keep costs under control.”

She added: “The question must be how was it ever allowed to get to that point? If I were in the Treasury, I would have been on the phone to the chief executive of HS2 non-stop, demanding answers and solutions on behalf of taxpayers, businesses and commuters. But, with this government, this has become a pattern.

“When it comes to getting things built and projects delivered, Britain has become the sick man of Europe, with HS2 coming in at 10 times the cost of the French equivalent.

“That is why our shadow transport secretary Louise Haigh will commission an independent expert inquiry into HS2 to learn the lessons for the future.”

Reeves also set out a series of measures to tackle the waste of taxpayers’ money

• A crackdown on the use of private planes by ministers, which she announced with a jibe at Mr Sunak, suggesting his love of flying was because he was scared of meeting voters
• Curbing Whitehall’s use of consultants
• A new Covid corruption commissioner with a “hit squad” of investigators to recoup money lost in the “carnival of waste” during the pandemic

Reeves has confirmed plans for reforms to the “antiquated” planning system to make it quicker and easier to build the infrastructure needed for modern industries and clean energy networks.

She also confirmed that her first budget would crack down on the tax perks enjoyed by private schools, making them pay VAT and business rates.

She told Rishi Sunak to “bring it on” if he wanted a fight on the issue at a time when children in state schools were being taught in temporary classrooms due to crumbling concrete.

The shadow chancellor said: “The choice at the next election is this: five more years of the Tory chaos and uncertainty which has left working people worse off or a changed Labour Party offering stability, investment and economic security so that working people are better off.

“It falls to us to show that Labour are ready to serve, ready to lead and ready to rebuild Britain.”

Shadow chancellor Rachel Reeves reiterated Labour’s intention to abolish the non-dom tax status, telling delegates: “If you make your home in Britain, you should pay your taxes here too, and with Labour you will.”

Ms Reeves said her first budget would see her end the “tax loophole” exempting private schools from paying VAT and business rates, adding: “We will put that money into helping the 93 per cent of our children who are in our state schools.

“I tell you, if Rishi Sunak wants a fight on this, if the party that has herded our children into Portakabins while our school roofs crumble wants a fight about who has the most aspiration for our children, then I say bring it on.”

A Labour government would introduce a new fiscal lock, guaranteeing in law that any government making permanent and significant tax and spending changes will be subject to an independent forecast from the Office for Budget Responsibility (OBR), Rachel Reeves has said.

Speaking from the main stage of the Labour Party conference, the shadow chancellor said: “A Labour government will not waver from iron-clad fiscal rules. nor play the Tory game of undermining our economic institutions.

“The last Labour government granted operational independence to the Bank of England. I started my career as an economist at the bank and I saw the lasting contribution that that made to Britain’s economic success.

“So, we will protect the independence of the bank, the Office for Budget Responsibility and our civil service. And, as chancellor, I will put forward a new charter for budget responsibility, a new fiscal lock guaranteeing in law that any government making permanent and significant tax and spending changes will be subject to an independent forecast from the Office for Budget Responsibility.”

She insisted “never again”, adding: “Let me address directly those who say that to make hard choices is to make the same choices as the Tory Party. To them I say economic responsibility does not detract from advances for working people. It is the foundation upon which progress is built: hard choices, but Labour choices.

“The choice to back our high streets and small businesses by requiring online tech giants to pay their fair share.”

Shadow chancellor Rachel Reeves accused the Conservatives of “looking inwards” and “queuing to cheer the extremists rather than kicking them out of their party”, adding to delegates: “And telling us what we already know – Liz Truss might be out of Downing Street but she is still leading the Conservative Party.

“The one sensible thing that they came up with was their phased smoking ban, which we support.

“However, I do fear for the Conservative Party – with such a shortage of fag packets, what on earth are they going to write their next policy on?”

Ms Reeves said Labour’s “defining economic mission is to restore growth to Britain” before reiterating her “securonomics” approach.

The choice at the next general election is “five more years of the Tory chaos” or a “changed Labour Party”, Rachel Reeves has said.

The shadow chancellor told the Labour Party conference “there is no hope without security”, adding: “You cannot dream big if you cannot sleep in peace at night, the peace that comes from knowing that you have enough to put aside for a rainy day and the knowledge that when you need them, strong public services will be there for you and your family.

“The strength that allows a society to withstand global shocks because it is from those strong foundations of security that hope can spring.

“The choice at the next election is this: five more years of the Tory chaos and uncertainty which has left working people worse off or a changed Labour Party offering stability, investment and economic security so that working people are better off. It falls to us to show that Labour are ready to serve, ready to lead and ready to rebuild Britain.”

She added: “In chess, you learn to think several moves ahead but even I couldn’t have predicted the mayhem that we have seen, week after week, year after year from this Conservative government.”