London Playbook PM: Things can only get wetter

Good afternoon. This is Andrew McDonald in Liverpool for Labour conference.
— Rachel Reeves went for the glass-half full approach to her big speech at Labour conference.
— But problems are still swirling for the fledgling government.
— Playbook PM rounds up everything else you missed from Labour conference.
— Ben Wallace faced the Afghanistan inquiry. 
— Spotteds galore from last night: including a Cabinet minister out til 4 a.m.
**A message from Google: For the UK to lead on AI, we need an enhanced approach; prioritising investment and infrastructure, and growing the digital skills needed for universal adoption.  There is huge potential in science, healthcare, energy, which could grow the economy by £400bn by 2030. Read Google’s ‘Unlocking the UK’s AI Potential’ report: goo.gle/uk-ai-opportunity.**
GLOOM DAY: Rachel Reeves tried to turn Labour frowns upside down after a gloomy start to a Labour conference held in the pouring rain amid the new government’s even gloomier start in life. The chancellor had the day’s main speech in Liverpool.
Project cheer: Reeves — the first chancellor to address Labour conference since Alistair Darling all those years ago — went for the glass-half full approach with her speech at noon — in an effort to project that things can only get better, innit. 
Which is little wonder … after the build-up to Labour’s first conference in power since Oasis were last a thing was dominated by rows about donations, the slashing of winter fuel payments and polls showing a big drop in Labour’s popularity. 
Enter Rachel: Perhaps conscious of the gloomy backdrop, Reeves grinned throughout the opening of her speech, which focused on how proud she was to be the first ever female chancellor and on Labour’s big election win. “Today the women’s Parliamentary Labour Party is bigger than the entire Conservative parliamentary party,” she said — to predictable roars from the party faithful. Her promise to appoint a Covid corruption commissioner to investigate Covid contracts was also greeted with approval, obvs, as was her assertion that Labour is a “changed party” after a pro-Palestine protester briefly interrupted proceedings.
But those roars were nothing … compared to the din that greeted her promise that “there will be no return to austerity” under Labour. You’ll have to wait for her budget to see how that squares with her order to Whitehall departments to make big cuts. 
Before that: Reeves reminded the conference hall of the difficult, and unpopular, decisions she had made in office so far — with a tough budget to come. “I know not everyone in this hall, or in the country, will agree with every decision that I make, but I will not duck those decisions,” she said. But she moved on from the misery, promising her budget would have “real ambition”. 
As for actual policy meat: There wasn’t a lot — to be fair understandably given the budget is only a few weeks away. But economists are a touch concerned about where the axe may fall next month, given Reeves again ruled out increases to the rates of income tax, national insurance and VAT, but is also promising to plug the big fiscal black hole Labour reckon the Tories left behind. “It is hard to see how the chancellor can raise the money she says she needs without undermining at least one of these pledges,” Tom Selby, director of public policy at AJ Bell Financial Services told POLITICO’s finance team. 
But the subtext … was clear: there’s more to this government than just penny-pinching and blaming the Tories (though Reeves still talked up the need to make difficult decisions and did a fair bit of Tory bashing.) POLITICO’s Mason Boycott-Owen has more from Reeves’ speech here. 
Eyes on the prize: “It was really important that she showed what the prize is,” Reeves’ former adviser Heather Iqbal told Playbook PM after the speech. “There has been doom and gloom, quite rightly. But I think this was an effort to show a turning point and paint a picture a bit more of what the prize is at the end of it.” 
The reviews are in: George Eaton from the New Statesman reckoned the speech showed what Reeves had learned from Gordon Brown … ITV’s Robert Peston also thought the speech captured Brown’s “prudence with a purpose” narrative … the Spectator’s Katy Balls said Reeves was trying to calm business concerns about the doom and gloom narrative … the i’s Ian Dunt argued Labour needed to better encapsulate its argument despite a “substantial and realistic” speech … and the Guardian’s Andrew Sparrow reckoned, despite the lack of a new policy offering, the vision for a better future helped explain the likely pain in the forthcoming budget.
BUT BUT BUT: The gloomy vibes at Labour conference aren’t exactly going away — not helped by Liverpool’s heavy rain bringing the vibes down all day. Some struggling delegates formed a queue for the hand dryers in the gents’ toilets as they tried desperately to dry sodding wet hair and suits. 
While conference officials had to close … the plush Heathrow lounge in the conference center due to “extreme flooding”, Playbook PM hears. 
And when it rains, it pours: Far more important than the weather, the Royal College of Nurses announced that they were rejecting the government’s latest pay offer … bang smack in the middle of Reeves’ speech. Two-thirds of the RCN’s members who voted online said the government’s award of a 5.5 percent pay rise wasn’t enough. The BBC has a write-up.
Back to the tough choices: Health Secretary Wes Streeting told LBC he understood where the nurses were coming from … but that there would be “hard choices” on nurses pay and the offer wouldn’t be improved. More from LBC’s Natasha Clark here.
From gloom to BOOOOOOOO: Boos erupted in the Labour conference hall after angry delegates realized a vote on cuts to winter fuel payments had been shifted to Wednesday morning — a graveyard slot after lots of folks have already headed home. Which is very convenient for the Labour leadership. This morning’s Playbook picked up the whispers about the delay.
Hitting out: “Right now it is fair to say that the Labour leaders have tried to silence the voice of pensioners, workers and communities at party conference, in this blatant maneuver to block debate on winter fuel cuts and the departure towards Austerity Mark 2,” Unite General Secretary Sharon Graham said. “When this becomes widely known there will be real anger among everyday people.” The Telegraph and Guardian have good write-ups on the shenanigans. 
On the other problem: Reeves’ pre-speech morning media round was also dominated by questions over her own role in the still rumbling donations saga — her acceptance of £7,500 of funding for clothing from a friend. “This is something that we did during the election campaign to get ready for government. It’s not something that I’m going to do in government,” Reeves told Times Radio. “I can understand that to a lot of people it looks a bit odd. I get that.”
Ready for her close-up: Reeves was also forced to defend Angela Rayner’s department for hiring a taxpayer-funded “vanity” photographer, insisting on the morning round: “It’s not a personal photographer.” MCHLG officials continued to insist the role covers the whole department and Rayner had no part in deciding to create it, despite the job title being … *checks notes* … “Chief Photographer to the Deputy PM,” h/t Aubrey Allegretti.
In fairness … This is really a much wider issue about the creep of public bodies putting their messages (and spin) straight to the public on social media, and so avoiding the inconvenient filter of a critical press. In-house photographers get access to some events press photographers can’t, and choose which frames to upload — a glance at the No. 10 Flickr makes it very obvious the sorts of choices that get made. This is not just a Labour or Tory issue, despite what Angela Rayner herself used to say. An official tells my colleague Dan Bloom that civil servants were actually discussing a plan to hire the photographer before Labour won the election.
And of course: We have a pod for that.
LIGHTING QUICK ROUND-UP OF THE OTHER SPEECHES: Defense Secretary John Healey promised to set out a path to eventually increase defense spending to 2.5 percent of GDP … Business Secretary Jonathan Reynolds bigged up Labour’s pro-business agenda as the warm-up for Reeves … Science Secretary Peter Kyle talked up the whole opportunities from tech thing, and made a joke about Rishi Sunak being “all mouth and short trousers” … Transport Secretary Louise Haigh focused on busses … Welsh Secretary Jo Stevens and Welsh FM Eluned Morgan came armed with an announcement that the Welsh and U.K. governments would work together on cutting NHS waiting lists … and Environment Secretary Steve Reed confirmed plans to build new reservoirs and sewage systems using billions in private finance.
Project cheer: Scottish Labour Leader Anas Sarwar used his keynote speech to double down on the whole cheering up conference thing, insisting “Scotland’s best days lie ahead of us” — with the obvious subtext of: “if you vote for me in two years time.” The Scottish Sun has a writeup.
ED THE HAPPY WARRIOR: Ed Miliband was also channeling the hopey-changey stuff. “Tough times mean we don’t lower our sights, we raise them,” the energy secretary told delegates, 10 years almost to the day since his last conference speech as Labour leader. “This is our chance in our time to write a new chapter in the history of our great country.” Has no-one told him about the black hole?
BIDENOMICS ENVOY: One of Joe Biden’s most senior economic advisers is in Liverpool to give advice to top Labour ministers and officials, Playbook’s Stefan Boscia picks up. Heather Boushey, from the White House’s Council of Economic Advisers, has been speaking at several fringe events and was spotted hobnobbing at Labour Together’s reception Sunday.
BIZ BUZZ: Around 500 hundred corporate figures sheltered from the rain at an exclusive £3,000-a-ticket Business Day event, lovingly dubbed “CEO creche” by public affairs pros, my colleague John Johnston writes in.
On the agenda: Business leaders were treated to a morning plenary on devolution with Labour’s cadre of mayors, before sitting through a live stream of Reeves’ speech, according to the agenda seen by John.
Nitty gritty: So far, so dull, but after a spot of lunch with senior Cabinet ministers, business leaders got the chance to grill Starmer, Reeves and Business Secretary Johnny Reynolds on their plans, with a post-event networking bash to press the flesh with Labour’s top team kicking off shortly.
Not impressed: “Dull and oversubscribed,” one attendee told John.
Talking business: Stefan messages in to say that Reynolds promised the execs he would unveil the head of Labour’s industrial strategy council in the coming weeks (as first reported by Playbook last week). He told Labour’s Business Day a chair for the new quango, to direct the U.K.’s industrial strategy, would be announced “shortly” — which he’d already said in an interview with the FT yesterday, so well worth the price of the megabucks tickets.
Plus: Reeves hinted heavily that the appointment would be unveiled at next month’s global investment summit, Politico’s Sophie Inge writes in to say, adding a green paper published alongside the budge would outline “long-term sectoral growth and priority industries of the government” ahead of the final strategy, expected in Spring 2025.
The big question … is whether the party managed to secure the five figure sum they were touting around to corporate bigwigs in exchange for getting their branding on the lanyards for the event?
Still to come: Energy Minister Michael Shanks at a Labour Together fringe on the national grid (5.30 p.m.) … A IFG fringe on standards in public life with Cabinet Office Minister Nick Thomas-Symonds (5.30 p.m.) … A Cuba Solidarity Campaign rally with MPs including Richard Burgon and Kim Johnson (6 p.m.) … The Palestine Solidarity Campaign has its event (6 p.m., Hilton Albert 4) … ditto Labour Friends of Palestine (7 p.m., Hall 2 ACC) … and Creative Industries Minister Chris Bryant is in conversation with PoliticsHome — with wine. (9.15 p.m., ACC Hall 4B). More in the booklet/conference app.
And I know why you’re here: The list of tonight’s conference receptions is further down the email.
WALLACE’S WORDS: It was Ben Wallace’s turn to appear before the Afghanistan inquiry investigating claims British special forces carried out extrajudicial killings in Afghanistan. The former defense secretary, who set up the inquiry in 2022, denied fellow former minister Johnny Mercer’s accusations that he lacked curiosity about allegations the ex-veterans’ minister brought to his attention.
Two sides: “I think it’s highly inaccurate,” Wallace told the inquiry. “Not only did I seek to dig deeper, I also even seek to dig internationally, to try and get to the bottom of whether or not assurances that I’d be given were truthful.” Wallace also spoke of his “duty to the men and women of the armed forces to make sure that their reputation is not dragged through the mud or indeed libeled or besmirched without evidence.”
Right move: Wallace insisted decisions around discontinuing investigations — in particular the closure in 2019 of Operation Northmoor, which had been investigating alleged wrongdoing — was not shaped by image or public opinion. “It is probably the least of my consideration whether I look good on the front of the newspaper,” he said.
Lessons from history: The ex-defense secretary said he was impacted by the legacy investigations into the Northern Ireland Troubles, saying his priority was “about how can we make sure this is either dealt with and come to a conclusion, or it is avoided in the future because we improve our processes,” arguing this was the “best way” to protect the armed forces. 
FREEBIE DEFENSE: Tory leadership contender Kemi Badenoch defended politicians of all parties who accept freebies, saying it made up for time they don’t see their family due to work commitments. Speaking to Times Radio’s Andrew Neil, Badenoch said: “If someone says, well, you can do some work and we can have a chat and you get time to spend with your family at something that they probably wouldn’t be able to do normally, you say yes to it.” Badenoch hastened to add that “you can’t buy me with a glass of Prosecco and smoked salmon.” Good to know.
Yellow card? Badenoch was also probed on her immigration record compared to that of Robert Jenrick, and hit out at his resignation as immigration minister last year. “I think it’s an interesting argument to say that things didn’t go well when I was doing the job, but give me another chance.” Get ready for a lot more of this at Tory conference next week.
BLOWING THE WHISTLE: The government is expected to respond to the UEFA letter which warned plans for an independent football regulator could amount to undue government influence, PolHome’s Tom Scotson hears, by facing down the concerns and rejecting the suggestion that a regulator could affect English participation in UEFA competitions.
**Be part of the conversation at the Financial Services UK Summit, happening November 28. Gain insights into the future of financial policy and regulation in the City of London, with high-impact discussions and debates. Secure your spot now!**
DRENCHED: Playbook PM strongly relates to this tweet from Christian Calgie.
MIDDLE EAST LATEST: Lebanon’s health ministry said at least 274 people were killed and more than 1,000 wounded in Israeli strikes which saw the deadliest day of the Israel-Hezbollah conflict in the past year. Lebanese Prime Minister Najib Mikati said Israel’s actions marked a “war of extermination in every sense of the word.” Thousands of people have fled southern Lebanon for the capital Beirut, leaving roads gridlocked. Reuters has further details.
From Israel: The Israel Defense Forces said it attacked about 800 Hezbollah targets. Spokesperson Daniel Hagari said every house struck “contains weapons.” Prime Minister Benjamin Netanyahu warned “complicated days” lie ahead, but that the government was meeting the promise to “change the security balance, the balance of power in the north.” The BBC has a live blog.
ACROSS THE POND: Ryan Routh, the man suspected of attempting to assassinate former President Donald Trump last week, left a note several months ago urging others to “finish the job” and offering  $150,000 to anyone who killed the Republican presidential candidate, prosecutors said. The letter addressed to “The World” also slammed Trump’s moral character and complained he’d ended “relations with Iran like a child” — more from my Stateside colleagues.
**A message from Google: AI could add £400bn to the UK economy by 2030, but only if we act now. We’re excited to share a new report, ‘Unlocking the UK’s AI Potential’, which outlines the steps we can take together to make Britain a global AI leader. This includes investing in critical AI infrastructure, equipping workers with essential skills, and promoting responsible AI adoption across all sectors. The report recommends a National Research Cloud to boost computing capacity, and a National Skills Service to train the workforce of the future. We have a once-in-a-generation opportunity to grow our economy, create new jobs, and drive breakthroughs in health and science. Let’s work together to drive economic growth in the UK with AI. Learn more: goo.gle/uk-ai-opportunity-keyword.**
LEADING THE NEWS BULLETINS: Channel 5 News (5 p.m.) leads on flooding in Bedfordshire and Oxfordshire … as does BBC News at Six … Channel 4 News (7 p.m.) focuses on the Israel-Hezbollah conflict and has interviews with Chancellor Rachel Reeves and Energy Secretary Ed Miliband.
Tom Swarbrick at Drive (LBC, until 6 p.m.): Scottish Labour Leader Anas Sarwar (5.05 p.m.).
Drive with John Pienaar (Times Radio, until 7 p.m.): Health Secretary Wes Streeting … Chief Secretary to the Treasury Darren Jones … Foreign Affairs Committee Chair Emily Thornberry … Labour donor Dale Vince … RCN General Secretary Nicola Ranger … CBI Chief Executive Rain Newton-Smith … ASLEF Secretary General Mick Whelan … Palestinian Ambassador to the U.K. Husam Zomlot.
BBC PM (Radio 4, 5 p.m.): Science Secretary Peter Kyle … TUC General Secretary Paul Nowak … former Jeremy Hunt adviser Sushil Wadhwani.
News Hour (Sky News, 5 p.m.): Anas Sarwar (5.45 p.m.) … former U.S. Ambassador to NATO Kurt Volker (6.30 p.m.).
The News Agents (Podcast, drops at 5 p.m.): Darren Jones.
Tonight With Andrew Marr (LBC, 6 p.m.): Ed Miliband (6 p.m.) … Rain Newton-Smith (6.15 p.m.) … Labour MPs Jeevun Sandher and Yuan Yang (both 6.30 p.m.) … Keir Starmer’s former Executive Director of Policy Claire Ainsley (6.45 p.m.).
Dewbs and Co (GB News, 6 p.m.): Former Labour MP Steve McCabe … former Tory PPC Alex Deane.
Iain Dale (LBC, 7 p.m.): Peter Kyle (7 p.m.).
BBC Newscast (Podcast, drops at 7 p.m.): Rachel Reeves.
Politics Hub with Sophy Ridge (Sky News, 7 p.m.): Labour MP Rachael Maskell … Labour peer Margaret Hodge.
Cross Question with Iain Dale (LBC, 8 p.m.): Paymaster General Nick Thomas-Symonds … Labour MP Mike Tapp … CWU General Secretary Dave Ward.
Patrick Christys Tonight (GB News, 9 p.m.): Former Tory Chair Jake Berry … former Tory MP Andrea Jenkyns.
Newsnight (BBC 2, 10.30 p.m.): Industry Minister Sarah Jones … suspended Labour MP Zarah Sultana … UCU General Secretary Jo Grady.
TWEETING TOMORROW’S PAPERS TONIGHT: George Mann.
REVIEWING THE PAPERS TONIGHT: Times Radio (10.30 p.m.): UK in a Changing Europe’s Jill Rutter and ConHome’s Henry Hill … Sky News (10.30 p.m. and 11.30 p.m.): The Liverpool Echo’s Liam Thorp and the Express’ Sam Lister.
THE BEST SHOW IN TOWN: Drinks will be served from 6 p.m. at POLITICO’s Happy Hour reception, presented by Intuit. Invites required.
Drinks will also be served at … the Irish Embassy reception (5 p.m.) Labour peer Shami Chakrabarti’s book launch with Attorney General Richard Hermer (6 p.m.) … Policy Exchange (6.30 p.m.) … Electoral Reform Society (7 p.m.) … Labour Growth Group (7 p.m.) … Gibraltar (7 p.m.) … Britain Renewed with Liz Kendall, Shabana Mahmood and Ed Miliband (7.30 p.m.) … CBI (8 p.m.) … Fabians, with a DJ battle between Andy Burnham and Steve Rotheram (8 p.m.) … LabourList karaoke (8.30 p.m.) … Global Counsel (9 p.m.) … the Queenager’s Ball (9.30 p.m, a throne is promised) … Sky party (10 p.m.) … and FGS Global (10.30 p.m.). Invites probs required.
LABOUR CONFERENCE: Keir Starmer headlines at 2 p.m.
IN NEW YORK: UNGA begins.
SPOTTED LATE LAST NIGHT: A mole hears that Wes Streeting was in the Pullman bar attached to conference until 4 a.m. last night. Hope the nursing news didn’t worsen the hangover. The health secretary still made it back downstairs for breakfast by 9 a.m.
SPOTTED AT MCDONALDS LATE LAST NIGHT: At least three senior SpAds, various Labour aides and MPs Stella Creasy and Sarah Owen.
SPOTTED WANDERING THE CONFERENCE STALLS: Alan Bates actor Toby Jones and former England goalkeeper David James.
WRITING PLAYBOOK TUESDAY MORNING: Sam Blewett.
THANKS TO: My editor Rosa Prince, reporter Noah Keate and the POLITICO production team for making it look nice.
SUBSCRIBE to the POLITICO newsletter family: Brussels Playbook | London Playbook | London Playbook PM | Playbook Paris | EU Election Playbook | Berlin Playbook | Global Playbook | POLITICO Confidential | Sunday Crunch | EU Influence | London Influence | China Watcher | Berlin Bulletin | Living Cities | D.C. Playbook | D.C. Influence | All our POLITICO Pro policy morning newsletters