Keir Starmer declares there is 'light at the end of the tunnel' for UK

Sir Keir Starmer will today declare there is 'light at the end of the tunnel' for the country as he pledges to lead a 'great reforming government'.

In his keynote speech to Labour's annual conference in Liverpool, the Prime Minister will try to lift the gloom that has threatened to envelop his tenure by arguing that making 'painful choices' now will eventually pay off.

Sir Keir will urge people to join a 'collective' effort to 'renew' Britain, saying it will involve a 'shared struggle'.

He will say his project 'will be tough in the short term, but in the long term it's the right thing to do for our country and we all benefit from that'.

After weeks of bad headlines about the thousands of pounds of free gifts received by Sir Keir and senior figures such as Rachel Reeves and Angela Rayner, the PM will re-commit himself to 'the service of working people'.

The PM will acknowledge that many voters are 'fed up' with politics, adding: 'I know this country is exhausted by and with politics. 

'I know that the cost-of-living crisis drew a veil over the joy and wonder in our lives and that people want respite and relief, and may even have voted Labour for that reason.'

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But Sir Keir will not offer an apology for accepting more than £100,000-worth of freebies. One senior source said: 'This is a speech setting out a ten-year vision for the country – not a discussion about a few suits.'

Ministers have been shaken by a fall in business confidence following gloomy rhetoric about the state of the economy. 

But the PM will today appeal to voters – and Labour members – to stick with a plan that has already seen cuts to pensioners' winter fuel payments. 

He will say: 'The truth is that if we take tough long-term decisions now, if we stick to the driving purpose behind everything we do: higher economic growth – so living standards rise in every community; our NHS facing the future – waiting lists at your hospital down; safer streets in your community; stronger borders; more opportunities for your children; clean British energy powering your home; making our country more secure... then that light at the end of this tunnel, that Britain that belongs to you, we get there much more quickly.'

It comes after Ms Reeves also tried to cut through her Government's doom-mongering by saying there is a 'prize on offer' if the country makes the 'right choices now'.

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Delivering her speech to Labour's conference yesterday, the Chancellor claimed her 'optimism for Britain burns brighter than ever' and her 'ambition knows no limits'. But there were warnings that jobs growth has been stifled as growth slows amid 'jangling nerves'.

Worse-than-expected monthly figures from the S&P Global purchasing managers' index (PMI) suggested Labour's tax-raising plans are taking their toll on the private sector.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: 'Investment plans in particular are reported to have been put on ice pending clarity on the new government's policies, especially towards taxation.' Separate data from the Confederation of British Industry revealed a sharp downturn in UK manufacturing, with firms 'increasingly cautious' ahead of the Budget.

Shadow Chancellor Jeremy Hunt said: 'The last few months – and today's speech – were a big opportunity to set out plans to grow the economy. The Chancellor once again wasted it with discredited attacks on the Opposition.'