Britain's Chancellor of the Exchequer Rachel Reeves speaks on the second day of the annual Labour Party conference in Liverpool, north-west England, on September 23, 2024.

Liverpool, ENGLAND — U.K. Finance Minister Rachel Reeves vowed on Monday that Britain will not return to austerity, but said she would make hard choices as she lays out budget proposals next month.

"It will be a budget with real ambition ... a budget to deliver the change we promised. A budget to rebuild Britain," she told a crowd of Labour party delegates Monday. "There will be no return to austerity."

Her keynote speech, briefly interrupted by heckles from a pro-Palestinian protester in the crowd, came as Labour kicked off its annual party conference on Monday — its first in power for 15 years.

The ruling Labour government has faced criticism for generating an atmosphere of doom over the state of the public finances, with Prime Minister Keir Starmer warning of "painful" decisions after the party rallied to victory in the July general election.

U.K. national debt is currently running at 100% of gross domestic product for the first time since 1961, fresh data from the Office for National Statistics showed Friday. In the financial year to August, the deficit totalled £64.1 billion ($85.4 billion) — £6.2 billion more than the ONS forecast in March.

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