In first conference speech as PM, Labour leader will defend tough rhetoric but say there is light at the end of the tunnel

Keir Starmer will cast off the gloom that has dominated his early days in power and pledge to “build a new Britain” as the Treasury examines tweaking the fiscal rules to allow more capital spending.

Sources said the government could use next month’s budget to change the way its five-year debt rule is assessed, which could allow more spending on housing, roads and hospitals.