Labour is now the party of “economic competence,” Shadow Chancellor Rachel Reeves has told delegates at the party’s conference in Liverpool. 

Her speech came as the pound fell to its lowest ever level against the dollar, prompting speculation of an emergency interest rate rise by the Bank of England.

The market’s reaction to Kwasi Kwarteng’s mini-budget last Friday saw the pound dive nearly 5% at one point, hitting $1.0327, the lowest since Britain went decimal in 1971.

Ms Reeves told delegates: "Last year, I told this conference that I was more than happy to take on the Tories on economic competence, because I know we can win.

"I'm now wondering if they even plan to turn up for the fight.”

She added: “It is becoming clearer by the day that Labour is the party of economic responsibility and the party of social justice.

"It is time for a government that is on your side, and that government is a Labour government."

Ms Reeves also confirmed that the party would overturn Mr Kwarteng’s decision to scrap the 45% rate of income tax on top earners. 

She said the party would use the money generated to train more new district nurses, health visitors and midwives.

Ms Reeves told delegates: “With a Labour government, those at the top will pay their fair share. The 45p top rate of income tax is coming back.

“Here’s what we will do with that money. The next Labour government will double the number of district nurses qualifying every year, we will train more than 5,000 new health visitors, we will create an additional 10,000 nursing and midwife placements every year.

“More than that, we will implement the biggest expansion of medical school places in British history, doubling the number of medical students so our NHS has the doctors it needs.”

There were also commitments to increase the minimum wage to become a real living wage. 

She also said the party would establish a national wealth fund in a bid to invest in new industries and promised this would result in a zero-carbon economy “made in Britain”.

Meanwhile, Greater Manchester mayor Andy Burnham has criticised Sir Keir Starmer for saying he would keep Mr Kwarteng's 1p cut on the basic rate of income tax.

The former MP - often touted as a potential successor to Sir Keir - told the BBC it would be better to spend the money on public services.

“Public services are facing a really challenging winter and we all need them to be able to keep going during that challenging winter,” Mr Burnham told BBC Radio 4’s The World At One.

“I would have said it is a moment to secure public services with pay rises for public servants who otherwise will see their heads slipping below the water in a cost-of-living crisis and those on the very lowest incomes.”

Mr Burnham denied he was seeking to cause trouble for the leadership at the Labour Party conference but said he had a duty to give them a “blast of reality” on behalf of the people he represented.

“I’m talking from the real world as I see it and I see residents in Greater Manchester at risk. I didn’t come here to cause trouble. It is my job to give them that blast of reality,” he said.

Delegates at the conference have voted to debate motions aimed at committing the next Labour government to bringing rail in England and Royal Mail back into public ownership.

The conference also voted for a motion which calls for a negotiated settlement in the rail dispute and “supports all Labour MPs attending the picket lines until such an outcome is reached”.