RACHEL Reeves was left red-faced yesterday after nurses rejected an inflation-busting rise — just one minute after she bragged about settling public sector pay rows.

Union chiefs at the Royal College of Nursing appeared to time their announcement deliberately.

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The Chancellor told Labour’s annual conference in Liverpool at 12.32 how the new government had won over NHS workers, teachers and members of the Armed Forces.

Ms Reeves said: “I am proud to stand here as the first Chancellor in 14 years to have delivered a meaningful, real pay rise to millions of public sector workers.

“We made that choice. We made that choice not just because public sector workers needed that pay rise, but because it was the right choice for parents, patients and for the British public.

“The right choice for recruitment and retention. And it was the right choice for our country.”

But she was immediately sent a warning shot when the nurses paved the way for walkouts by snubbing a 5.5 per cent offer in a record turnout of around 145,000 members.

The RCN are understood to be looking for better working conditions — and are expecting more cash after junior doctors were offered a 22 per cent rise and train drivers accepted a three-year deal worth around 15 per cent.

Union boss Prof Nicola Ranger said there had been “a fundamental shift in the determination of nursing staff to stand up for themselves”.

Ms Reeves claimed the previous government wanted to ignore independent pay review bodies.

And she said Tories believed “that public sector workers’ pay should fall further behind the cost of living, that ordinary families should pay the price of industrial action.”

She went on: “If the Conservatives Party want a fight about who can be trusted to make the right choices for our public services and those who use them, then I say bring it on.”

But last night Shadow Health Secretary Victoria Atkins hit back: “Labour was warned that if they gave an inflation-busting pay rise to junior doctors then other hard-working health staff would ask why they aren’t as valued by this government.

“As a result of that decision, this response by RCN was clearly foreseeable, yet the Chancellor and Health Secretary seem taken aback that their short-term decisions have long-term consequences.”

Ms Reeves — hugged after her speech by younger sister Ellie, the party’s new chairwoman — used it to counter criticism about spreading only doom and gloom.

Offering a positive vision for the country, the Chancellor promised voters will see “shovels in the ground, cranes in the sky” in a dash for growth.

She revealed at the end of July that there was a £22 billion black hole in the nation’s finances for the current year.

Axing winter fuel allowance for up to ten million pensioners, costing them up to £300, will partly help the spending gap.

She received applause amongst the delegates for making the decision.

The Chancellor said: “I made the decision to means-test the winter fuel payment so it is only targeted at those the most in need.

“I know not everyone in this hall or the country will agree with every decision I make but I will not duck those decisions. Not for political expediency. Not for personal advantage.

She has already said there will be tough decisions at next month’s Budget on tax, spending and welfare.

But she said there would be no return to austerity saying it was a “destructive choice”.

She said: “Yes, we must deal with the Tory legacy and that means tough decisions but I won’t let that dim our ambition for Britain.

“So it will be a budget with real ambition, a budget to fix the foundations, a budget to deliver the change that we promised, a budget to rebuild Britain.”

Reeves also offered a brighter future saying voters will soon see “a sight we have not seen often enough in our country”.

She added: “Shovels in the ground. Cranes in the sky. The sounds and the sights of the future arriving. We will make that a reality.”

She also said: “My optimism for Britain burns brighter than ever.”