Rachel reeves

Today

James Heale

Rachel Reeves, the Iron Chancer

Gordon Brown may not be every teenager’s political pin-up. But as an Oxford student, Rachel Reeves proudly kept a framed photo of him in her bedroom. It was Brown who introduced the first multi-year spending review in 1998: the kind of big political set-piece speech which he relished. Reeves’s speech on Wednesday showed the level of constraints facing the Treasury this decade vs the 1990s. Chess, not poker, is the Chancellor’s chosen game of recreation. As a player and a politician, she prides herself on making decisions guided by skill, care and thought. Yet this week she staked her government’s future on a series of political bets. Her tax rises

Tuesday

Michael Simmons

Labour goes nuclear while Reform turns to coal

17 min listen

Rachel Reeves has pledged a ‘new era of nuclear power’ as the government confirms a £14.2 billion investment in the Sizewell C nuclear plant in Suffolk. This comes on the eve of Labour’s spending review, with the government expected to highlight spending pledges designed to give a positive impression of Labour’s handling of the economy. However, as Michael Simmons tells James Heale and Lucy Dunn, there are signs that the government’s National Insurance hike is starting to bite. Plus – Nigel Farage has made two announcements in as many days. This morning, he unveiled Reform’s new chairman, former MEP Dr David Bull, taking over from the recently returned Zia Yusuf.

Monday

James Heale

Labour try to silence ‘austerity-lite’ accusations

13 min listen

James Nation, formerly a special adviser to Rishi Sunak and now an MD at Forefront Advisers, joins the Spectator’s deputy political editor James Heale and economics editor Michael Simmons, to talk through the latest on the government’s spending review, which is due to be announced on Wednesday. The last holdout appears to be Home Secretary Yvette Cooper, pushing for more police funding. But, against a tough fiscal landscape, what can we expect? And how much does it matter with the wider public? Plus – former chairman Zia Yusuf returned to Reform just two days after resigning, what’s going on? Produced by Patrick Gibbons.

Wednesday

James Heale

How to do a spending review

21 min listen

Labour’s spending review is expected on the 11th of June, when we will find out which government departments face cuts and which costs have been ringfenced. This can set the tone for politics for months to come as it gives a clue to which priorities matter most – especially in times of fiscal restraint – and which ministers are up, and which are down. But how is a spending review conducted? How does His Majesty’s Treasury balance the negotiations with those competing for its attention? And, following the leaked Angela Rayner memo, do we know which economic arguments are winning out? James Nation, formerly an official at HMT and then in

Thursday

The Spectator

Letters: In praise of the post office

Reeves’s road sense Sir: Is it stubbornness, denial, inexperience or some other agenda that prevents Rachel Reeves changing course in the face of uncomfortable facts? A multitude of surveys have told her that punitively taxing the rich means they will leave (‘The great escape’, 17 May). Recently I had lunch at a fashionable London club that was half-empty. When asked why this was, our waiter commented that he now rarely sees his previous international regulars, and if he does, they are only in town for a short stay. Endless business surveys have also told Reeves that her employer taxes will cost jobs, close companies, weaken growth and raise inflation, yet

Thursday

Martin Vander Weyer

Beef farmers have been stitched up

An awkward delay in the unveiling of the Mansion House Accord was, we’re told, nothing more than a Downing Street ‘timetabling issue’. It was perhaps a tenterhooks issue too, as Donald Trump’s Sharpie hovered over the UK-US trade deal which was clearly going to make bigger headlines. But the Accord also had to contend with City discord around the issue of ‘mandation’ of pension funds to invest in unlisted equity that might contribute to future UK growth. In July 2023, 11 institutions inked the first Mansion House ‘compact’, committing 5 per cent of ‘defined contribution’ pension monies to private equity by the end of the decade. Now 17 industry leaders

Michael Simmons Michael Simmons

The rich are fleeing – what next?

Keir Starmer is worried about who’s coming into the country. This week, he launched a white paper with the aim of cutting migration. Britain risks becoming an ‘island of strangers’, he said. However, it’s not just arrivals that should give him sleepless nights. It’s the number of people in the departures lounge too. London’s private members’ clubs, top schools, luxury car dealerships and estate agents are all grappling with the same problem: their customers are fleeing the country. Since 2016, almost 30,000 millionaires have left Britain – an outflow unmatched in the developed world. They are either returning home or moving abroad. The reason is a slew of tax changes

Andrew Gimson

Your state pension is a socialist bribe

Every four weeks the government sends me my state pension. Those words have a socialist, almost Soviet, ring. The amount has recently risen to £11,973 a year – a preposterous sum to send a 67-year-old man still in paid employment. But from the state’s point of view, the money is not entirely wasted: it buys a kind of loyalty. Because I accept the money, and do so with a certain pleasure, I am bound into the system and am less likely to say it’s a bad one. I’ve allowed myself to become a dependent. I may criticise the way the welfare state is run and demand improvements in the administration

Thursday

Michael Simmons

Who do voters trust most on the economy?

12 min listen

Chancellor Rachel Reeves has been in Washington D.C. this week at the IMF’s spring meetings, and will meet US Treasury Secretary Scott Bessent tomorrow. Cue the ususal talk of compromising on chlorinated chicken. Not so, reports the Spectator’s economics editor Michael Simmons, who explains that Reeves may offer a reduction in long-standing tariffs already imposed on American cars. But, it’s been a bad week of economic news for the Chancellor as the IMF downgraded the UK’s growth forecast.  We’re also one week away from the local elections – Starmer’s first big test since last year’s general election. The economy isn’t usually the number one issue at local elections but, as More in

Thursday

William Moore

Cruel Labour, the decline of sacred spaces & Clandon Park’s controversial restoration

51 min listen

This week: Starmerism’s moral vacuum‘Governments need a mission, or they descend into reactive incoherence’ writes Michael Gove in this week’s cover piece. A Labour government, he argues, ‘cannot survive’ without a sense of purpose. The ‘failure of this government to make social justice its mission’ has led to a Spring Statement ‘that was at once hurried, incoherent and cruel – a fiscal drive-by shooting’.  Michael writes that Starmer wishes to emulate his hero – the post-war Prime Minister Clement Atlee, who founded the NHS and supported a fledgling NATO alliance. Yet, with policy driven by Treasury mandarins, the Labour project is in danger of drifting, as John Major’s premiership did.

Friday

Katy Balls

Coffee House Shots Live with Maurice Glasman, David Frost and James Kanagasooriam

70 min listen

Join Katy Balls, Michael Gove, Lord Glasman, Lord Frost and pollster James Kanagasooriam as they unpack the highly anticipated Spring Statement and its implications for national policy and global security. Listen for: Michael’s plan for how to deal with the Donald, and why the Treasury is not fit for purpose; Maurice on his influence in the White House, and what’s wrong with the current political class; David’s reflections on why Brexit was ahead of its time; and James’s explanation for Britain’s lost sense of community.

Thursday

The Spectator

Letters: The futility of net zero

Not zero Sir: I was delighted to see your leading article about the impossibility of net zero (‘Carbon candour’, 22 March). We need now to expose its futility. The UK’s efforts will make no difference at all to global temperature. Whether it is naturally occurring or produced through coal burning, there is not the slightest chance of stopping the rise in atmospheric carbon dioxide (not ‘carbon’, which is nasty black stuff). Guy Liardet Meonstoke, Hampshire Ideological bullets Sir: ‘Don’t bite the hand that feeds you’, they say. But by biting the hand of business with her Budget, Rachel Reeves has shown total recklessness (‘The Rachel capers’, 22 March). By killing

The Spectator

The underlying message of Rachel Reeves’s Spring Statement

Rachel Reeves may not be the most mellifluous writer ever to inhabit 11 Downing Street. At the weekend, she informed readers of the Mail on Sunday that she would ‘make no apology for keeping an iron grip on the country’s finances’ but was happy to spend money on training more ‘brickies, sparkies and chippies’. The lurch from cliché to fake colloquialism does not suggest Reeves will be bracketed with Disraeli, Gladstone, Churchill or Lawson. But there is one addition to the political lexicon for which Reeves is responsible and which deserves a revival – ‘securonomics’. Before Labour’s election, the term was never far from Reeves’s lips. Launched with great fanfare

Katy Balls Katy Balls

Labour’s popularity contest

A few months ago, over a plate of bone marrow, a Tory adviser was considering how best to kneecap Labour. With the government’s working majority at 168, opposition debates could only go so far. Viral attack videos were hard to come by and CCHQ was depleted. Then the adviser hit upon something: a league table of cabinet ministers ranked by the Labour membership. It was an idea that arose from bitter experience. The Conservative-Home website has for years been running a grassroots ranking, showing which ministers were favoured by party members. It has proved such an accurate tracker about who was in pole position for any tilt at a leadership

Tuesday

Oscar Edmondson

Could Cabinet turn on Reeves?

13 min listen

Hard hats on for the Spring Statement tomorrow, where at around midday Rachel Reeves will deliver her fiscal update (read: significant fiscal set piece). Aside from not spooking the markets, the Chancellor will be hoping that she doesn’t spook those within her own party. There are rumours of discontent circling around Westminster about a potential Labour split. We have already seen secretaries of state briefing out their discontent over potential departmental cuts. Ministers have also been breaking rank this week to criticise Rachel Reeves for accepting free Sabrina Carpenter tickets. Can she keep the party united? Oscar Edmondson speaks to Katy Balls and John McTernan, former political secretary to Tony

Sunday

Katy Balls

For Rachel Reeves the worst could be yet to come

Rachel Reeves has spent the morning touring the broadcast studios as she attempts to pitch roll for Wednesday’s Spring Statement. While this was never meant to be a big fiscal event, it has taken on a new significance as a result of the worsening public finances. The Chancellor is looking for billions in savings with the OBR expected to slash its growth forecast and for rising borrowing costs to have wiped out Reeves’s £10 billion of fiscal headroom. Speaking this morning, Reeves tried to put the unappetising options she faces down to a changing world as a result of global instability part related to Donald Trump and tariffs as well

Thursday

Rupert Harrison

It’s time for Rachel Reeves to stop gambling

Next Wednesday Rachel Reeves will stand up in the House of Commons to deliver what she is calling her ‘spring forecast’. As so often with political language, everyone in Westminster knows it is no such thing, just as there was nothing ‘mini’ about Kwasi Kwarteng’s Budget of September 2022. The ‘spring forecast’ will be an emergency Budget, and the reasons for it reveal a surprising truth about the Chancellor of the Exchequer: she is an inveterate gambler. Unless everything turns out to be a brilliant exercise in expectation management, the worst-kept secret in Whitehall is that Reeves has already broken her ‘iron-clad’ fiscal rules. The Chancellor’s team will receive the

Katy Balls and Michael Simmons

‘Austerity is back’: Inside Labour’s emergency budget 

Dominic Cummings may have left Whitehall but his spirit lives on. Pat McFadden, the Chancellor of the Duchy of Lancaster, has repurposed Cummings’s call for ‘weirdos and misfits’ as a plea for ‘innovators and disruptors’. Downing Street this month launched an ‘AI Ideas’ competition in pursuit of bright sparks. A hackathon will follow. In No. 10 and 11, aides channel Cummings’s language as they talk of acting as an ‘insurgent’ government. ‘We’re all Dom now,’ says one government figure. In one area, Cummings’s influence on the new government is most apparent: the diagnosis of a failing state. Keir Starmer’s chief aide Morgan McSweeney has never met Cummings, but these days

Friday

James Heale

The UK economy is shrinking – how much pressure is Rachel Reeves under?

14 min listen

New figures from the Office for National Statistics show the UK economy unexpectedly shrunk by 0.1% in January. This comes only a few weeks after the Chancellor’s pro-growth speech, and a fortnight ahead of her Spring Statement. Just how much pressure is Rachel Reeves under? And how likely is it that Labour will change their approach? Economics editor Michael Simmons and deputy political editor James Heale join Patrick Gibbons to discuss, as well as a look ahead to next week’s expected announcement on reducing the welfare bill. Produced by Patrick Gibbons.

Thursday

Martin Vander Weyer

BMW’s Oxford retreat signals deep trouble for UK carmaking

Among British car factories, Nissan at Sunderland is the most productive and Jaguar Land Rover at Solihull probably the most advanced. As for industrial landmarks, the former British Leyland complex at Longbridge is reduced to a research and development facility for Chinese-owned MG; but ‘Plant Oxford’ at Cowley, the original home of Morris Motors now owned by BMW of Germany, still produces 1,000 Minis per day. And BMW’s decision to halt a £600 million project to build electric Minis there is, I fear, a moment of destiny for the whole UK auto industry. The truth is that the transition to electric cars has descended into chaos. Total UK car production