Nigel Farage goaded Keir Starmer for pressing the 'racist' button over Reform's plans for cracking down on immigration today.
Kicking off Labour's conference in Liverpool, the PM risked inflaming public anger by using the term to dismiss the policy of abolishing 'settled status'.
He also branded Mr Farage's proposals 'immoral' as he switched to a distinctly more aggressive stance against the insurgents.
But the Reform leader clapped back by pointing to polls showing Labour facing meltdown and him on track for No10.
And Zia Yusuf, Reform UK's head of policy, said: 'Labour's message to the country is clear: pay hundreds of billions for foreign nationals to live off the state forever or Labour will call you racist.
'Reform's plan will ensure only British people can access welfare and that migrants contribute to society.'
The spat came as Sir Keir desperately tries to shore up his teetering leadership, with rivals on manoeuvres and unions demanding a lurch to the Left.
The mutinous mood is darkening with a nightmare Budget looming on November 26. There are fears Rachel Reeves will need to impose £30billion of tax hikes to balance the books, as the economy stalls and government borrowing costs spike.
Meanwhile, Sir Keir insisted his controversial proposals for compulsory identification would clarify the 'principle that you cannot work in the UK unless you have ID'.
But he struggled to explain how the new arrangements can make a major difference, when firms are already obliged to obtain proof people have a right to work here.
In other twists and turns for Sir Keir today:
- The PM refused to go further than saying 'the manifesto stands' when challenged on the idea of VAT going up at the Budget;
- Unite has threatened to pull affiliation to Labour unless Rachel Reeves brings forward left-wing measures such as a wealth tax and more borrowing;
- Liverpool City Council leader Liam Robinson has warned that a Reform government would be 'like Thatcher on steroids';
- Labour conference has been hit with pro-Gaza protests as Sir Keir struggles to control discontent;
- A poll has found a majority of Scots support splitting the UK.
Kicking off Labour's conference in Liverpool, the PM risked inflaming public anger by using the term 'racist' to dismiss the policy of abolishing 'settled status'
Nigel Farage clapped back by pointing to polls showing Labour facing meltdown and him on track for No10
Mr Farage has unveiled plans to abolish indefinite leave to remain, although he later watered the ideas down amid a volley of criticism
Migrants preparing to attempt a Channel crossing from France yesterday
Sir Keir unveiled his latest big idea of bringing in digital ID - something long backed by his ally Tony Blair - on Friday.
However, it has been opposed by the Tories, Reform, Lib Dems and some Labour MPs for being ineffective and infringing civil liberties. A Parliamentary petition calling for the concept to be dropped has been signed by more than 2.1million people.
Grilled on the BBC's Sunday with Laura Kuenssberg this morning about how the plan could make a difference, Sir Keir said: 'I am absolutely convinced that amongst the reasons people travel through France... is because it is easier to work in our economy than it is in other countries.'
Challenged why employers who were currently not carrying out legally-required checks would take more notice of a digital ID, Sir Keir said: 'The difference is this is on point of starting, not a retrospective exercise as it now is.
'It is an automatic collection of the information by the government so we know exactly who is working in our economy.'
He added: 'We all acknowledge there is a problem… it is amongst the reasons that people want to come to the UK.'
Sir Keir attacked Reform's proposal to abolish 'settled status' and make those who currently have indefinite leave to remain re-apply under far stricter rules.
Mr Farage argued that the plan would save the UK taxpayer billions of pounds.
But critics pointed out that migrants who have lived in the UK for decades and have British children would be affected. Reform has since suggested pensioners, Ukrainians and Hong Kongers would be exempted.
Sir Keir said: 'Well, I do think that it is a racist policy. I do think it is immoral. It needs to be called out for what it is.'
Asked if Reform are trying to appeal to racists, Sir Keir said: 'No, I think there are plenty of people who either vote Reform or are thinking of voting Reform who are frustrated.
'They had 14 years of failure under the Conservatives, they want us to change things.
'They may have voted Labour a year ago, and they want the change to come more quickly. I actually do understand that.'
He had earlier said: 'It is one thing to say we're going to remove illegal migrants, people who have no right to be here. I'm up for that.
'It is a completely different thing to say we are going to reach in to people who are lawfully here and start removing them. They are our neighbours.
'They're people who work in our economy. They are part of who we are. It will rip this country apart.'
Sir Keir promised to put an end to taxpayer-funded taxis for asylum seekers travelling to doctor's appointments 'as soon as we can'.
He said: 'It shouldn't be happening. It's not fair.'
Pressed on whether this would be ended immediately, he said: 'As soon as we can, but we will stop it.'
Sir Keir also said he would like to bring forward the 2029 deadline the Government has set to close all asylum hotels, saying: 'I'm looking at alternative accommodation and doing everything we can to bring that forward.'
The PM said he had 'thought for some time that the Left got it wrong' on immigration.
Welsh Secretary Jo Stevens also turned her fire on 'nativist' Reform in her conference speech.
'Farage has turned up in Wales with patronising politics, with disrespect, division and derision for our communities,' she said.
'Reform UK don't care about Wales. They haven't got any Welsh policies. They haven't got a Welsh leader. They can't even spell Caerphilly right.
'But as much as we roll our eyes at their condescending nativist tone, they are a serious threat.
'They're a threat to our communities, a threat to our NHS and, if you work in Welsh public services, they are a threat to your livelihood.'
Sir Keir argued he can 'pull this round' despite another poll showed the party on track for disaster - with Mr Farage poised to win a huge majority.'I just need the space to get on and do the things that I need to do,' the premier said.
Mr Farage has insisted Sir Keir's personal jibes at him are evidence of 'terror' about Reform's surge.
In findings that will spread alarm among activists in Liverpool, More in Common research estimated that Reform would scoop 373 seats if an election were held now. Labour would be reduced to just 90 MPs, from nearly 400 currently.
Meanwhile, separate polling by Ipsos Mori has put Sir Keir's personal ratings at the lowest level any PM since comparable records began in 1977.
The premier has now outstripped the minus 59 net score reached by both Rishi Sunak and John Major - plunging to a dire minus 66.
Asked whether he accepted he was in 'political trouble', the Prime Minister told the BBC's Sunday With Laura Kuenssberg programme: 'In politics, there are always going to be comments about leaders and leadership, particularly at times like conference.
'But I always focus on what is it we're trying to achieve.'
Sir Keir gave the example of a proposed Hillsborough law, 'righting injustice that's gone on for 36 years, but also changing the position for thousands of people in the future'.
Sir Keir said 'there's a lot we've achieved but we've got to do more.'
Meanwhile, separate polling by Ipsos Mori has put Sir Keir's personal ratings at the lowest level any PM since comparable records began in 1977
The PM said he had been elected with a 'mandate to change the country' but added 'I always said that would take time'.
Sir Keir insisted he would be 'judged' at next election on living standards and whether public services had improved.
Sir Keir told The Sunday Times separately: 'I think we can pull this round.'
Amid frenzied speculation that Greater Manchester mayor Andy Burnham could seek a return to Westminster to oust him, Sir Keir warned about 'navel-gazing'.
'It is the fight of our times and we've all got to be in it together,' he said.
'We don't have time for introspection, we don't have time for navel-gazing.
'You'll always get a bit of that at a Labour Party conference, but that is not going to solve the problems that face this country.'
