Rachel reeves

Is this Rachel Reeves’s idea of a programme for growth?

It is certainly true that the Labour party has been more than a little devious over the tax rises that are to come. After an election campaign in which it insisted it had no plans – and no need – to increase taxes beyond a few measures such as extending VAT on school fees, mysterious holes started appearing in the public finances as soon as the party achieved office. So acute, apparently, is the lack of funds that Sir Keir Starmer felt the need to warn us this week that October’s Budget will be ‘painful’. It is an old trick, which David Cameron and George Osborne also tried to pull

Labour’s union problem

Less than two months in, one aspect of Keir Starmer’s government is becoming clear. This administration is closer to the trade unions than any we have had in the past 45 years. It is not just that the government has ceded readily to wage demands from teachers (a 5.5 per cent rise this year), junior doctors (22 per cent over two years) and train drivers (15 per cent over three years) – it has done so without seeking any agreement to changes in working practices. Given the abysmal productivity record of the public sector in recent years, especially since the pandemic, this is a remarkable omission. The government’s failure to

From the archives: the Rachel Reeves Edition

40 min listen

Women with Balls will be back in the Autumn with a new series. Until then, here’s an episode from the archives, with the new Chancellor Rachel Reeves.  On the podcast, she talks to Katy about being a teen chess champion, going to a school where her mum worked and what Labour needed to do to turn its losing streak.

Rachel Reeves has proved that strikes pay

Keir Starmer and Rachel Reeves were adamant that economic growth would be their first priority in government. It is hard to square that with the decisions the Chancellor has announced this week. The Chancellor claims to have discovered a £21.9 billion ‘black hole’ in the nation’s finances, yet she has created the largest part of that sum by deciding to spend £9.4 billion on inflation-busting pay settlements for public-sector workers without asking for reforms in return. This, it seems, is the first Reeves doctrine: pay now to avoid strikes later Junior doctors are to receive a rise of more than 20 per cent, spread over two years. But it is

Winter for boomers

-18 min listen

Rachel Reeves wakes to mixed headlines today after she announced a range of spending cuts to part fill a £22 billion ‘shortfall’ in public spending for this year alone.  The most controversial move by Reeves on Monday was her decision to axe the winter fuel benefit for pensioners not eligible for benefits. That saves £1.5 billion but has already been blasted by Martin Lewis and Age UK as a blunt measure that will hurt those on modest pensions who struggle to make ends meet.  Is there more hard medicine to come? Katy Balls speaks to Kate Andrews and John McTernan, former political secretary to Tony Blair.

Labour won’t spend outside fiscal rules, says Reeves

Chancellor Reeves adamant she will ‘make sure the sums add up’ Rachel Reeves gave an interview with Laura Kuenssberg this morning in which she emphasised the ‘mess’ she says the Conservatives have left behind, and restated that Labour would not spend outside of its fiscal rules. Kuenssberg asked the Chancellor whether she would be prepared to ignore the recommendations of the independent pay review bodies, which have called for a public sector pay rise of 5.5 per cent. Reeves would not confirm the government’s position, but accepted that ‘there is a cost to not settling’ public sector pay disputes, implying she might be open to above-inflation pay increases. What is

Kate Andrews

Will Reeves boost public sector pay?

As the dust around the election settles, a question Tory MPs and supporters still grapple with is why Rishi Sunak called the election when he did – not least because economic indicators point to improvements over the summer and autumn, as inflation returns to target and growth starts to pick up. But Rachel Reeves, the new Chancellor, is having none of this narrative. ‘I really don’t buy this idea that somehow we’ve been handed a golden inheritance,’ she told Laura Kuenssberg on the BBC this morning, in her first sit-down interview since she entered No. 11. ‘If the former prime minister and chancellor had thought things were so good, they

Can Labour deliver economic growth?

13 min listen

This morning, Rachel Reeves made her first speech as chancellor. She announced mandatory housing targets, promising 1.5 million homes over the next five years, as well as an end to the onshore wind ban. What else does she have in store, and can Labour deliver the growth the country needs? James Heale discusses with Katy Balls and Kate Andrews.

Why is Rachel Reeves so proud of working at the Bank of England? 

We don’t know much about what taxes she will impose. Nor do we have many clues as to how she will boost growth, or find the money to improve public services. Still, not to worry. It turns out that we can, at least according to her feed on X, trust the shadow chancellor Rachel Reeves to ‘run the economy’ for a very simple reason. She used to work at the Bank of England, and apparently they know about that kind of stuff over there. There is just one problem. In reality the Bank is not as brilliant as Reeves seems to think it is – and it is questionable, to

Why the fuss over The Spectator’s sale?

This diary is late. Two months late. The columnists who missed my Evening Standard deadlines often had elaborate excuses. Mine is that I’ve been involved in working out who is going to own this magazine. We’ve seen some oddities in this particular drama. Those vehemently opposed to government interference in a free press suddenly calling for government laws to regulate press ownership. Columns from advocates of free trade and open investment in every industry except, it turns out, their own. I don’t doubt some are motivated solely by high principles; but it’s worth asking the question of others: do their high principles happen to accord with their view of who

What does Rachel Reeves stand for?

As the world discovered when she was caught lifting other people’s work for her book on women in economics, Rachel Reeves is not the most original of thinkers. But she has political talents. She has cultivated her image as an uninspiring technocrat in order to present herself as someone who will not spring surprises or take risks as chancellor. She thinks the state is inefficient and taxes are too high. She believes in ‘securonomics’, which sounds like a pleasing contrast to years of Tory policies. It is easy to preach fiscal discipline, but in office Labour would find it very difficult to contain spending Polls show that voters now think

Rachel Reeves rapped over interests

Oh dear. Following the spring statement, Labour have been keen to make political capital in recent days, touting their credentials as responsible guardians of the nation’s finances. Not for them, the financial mismanagement and sleaze of Boris Johnson’s Tories: Labour have been reborn as the party of fiscal probity. So it must have been with some dismay that shadow chancellor Rachel Reeves last month found herself being investigated by the parliamentary commissioner for standards over her entries in the register of members’ interests. Now the commissioner, Kathryn Stone, has concluded her report into the MP for Leeds West. And it looks like that Stone may well be a reader of Steerpike’s columns

Is Labour ready to become the party of business?

While the Tories limp from one scandal to the next, an opportunity has opened up for Labour when it comes to courting business. Although it’s unlikely many voters elected Boris Johnson into office because they trusted his moral compass they did at least think he would deliver on his promise of sunlit uplands. But two years and a pandemic later, government spending as a percentage of national income is set to top 45 per cent, we’ve yet to ignite a bonfire of EU regulations, inflation has reached 5.4 per cent (and still rising) and the cost of living crisis is rapidly worsening. Voters are starting to question whether, with the

The flaw in Labour’s economic attacks

Labour avidly disagrees with the Tories’ plan to fill budget gaps by hiking National Insurance. So what would they do differently? This was one of the many tasks Rachel Reeves had today as the shadow chancellor delivered her speech at Labour party conference. Reeves not only had to set out an alternative tax-and-spend policy but also take aim at the financial decisions made by Boris Johnson’s government. Did Reeves succeed? No doubt her job was made much easier over the weekend as an energy crisis, which the government should have seen coming, continued to splash across the front pages, exacerbated by fuel shortages at the pumps brought on by a lack of

Labour’s disastrous switch to economic nationalism

The government will ‘Buy British’ whenever possible. A new law would force every public body to publish the percentage of supplies bought from domestic suppliers. And Gareth Southgate will be appointed as the country’s new management tsar, tasked with turning every worker into a winner. Okay, I admit I made that last one up. The rest, however, were among the blizzard of policy announcements from Labour’s shadow chancellor, Rachel Reeves, over the weekend. Less than three months into her new role, she, along with Sir Keir Starmer, has clearly decided to shift Labour economic policy towards tub-thumbing economic nationalism. But hold on. Is that really a good idea? Sure, it

Sunday shows round-up: Face masks to become ‘personal choice’ after 19 July, says Robert Jenrick

Robert Jenrick – We will have to ‘learn to live with the virus’ The Housing Secretary Robert Jenrick was the government’s chief spokesman today as England edges ever closer towards the planned relaxation of Covid restrictions on 19 July. Jenrick continued to make positive noises about this date, telling Trevor Phillips that data being examined by the Prime Minister was looking promising – and suggesting that another postponement of ‘Freedom Day’ was highly unlikely. However, Jenrick’s cautious comments did not rule out the return of restrictions in the winter, should cases continue to rise: RJ: It does seem as if we can now move forward… to a much more permissive

Rachel Reeves can easily make life difficult for Rishi Sunak

There is one thing to be said for Anneliese Dodds: as shadow chancellor, she set the bar very low. Virtually invisible, with few ideas, and a manner designed to send even political obsessives to sleep, her successor Rachel Reeves won’t have to do much to look like an immediate improvement. A wet tea towel would have more impact. And yet if Reeves wants to make a real impression, there is one move she should make, even though it would require some courage. She should focus on attacking the government from the liberal, pro-consumer right rather than the left – because that’s where the space is. After a disastrous set of

Labour’s trio of lobbying Lords

Labour has been making much of the issue of lobbying since the Greensill scandal broke last month, with Rachel Reeves calling for a ‘proper’ investigation ‘to rein in the lobbyists and lift standards in this great democracy.’ But attention has now turned to the opposition’s own frontbenchers– particularly in the House of Lords where both Charlie Falconer and Sue Hayman have been revealed as having ties to lobbying firms. Falconer is a partner at US law company Gibson Dunn which offers ‘political lobbying’ advice in the UK while Hayman is a board member of London outfit Grayling. Now Steerpike can reveal a third frontbencher on the red benches moonlighting as

Sunday shows round-up: Cameron’s behaviour ‘is acceptable’, says Environment Secretary

George Eustice – David Cameron’s behaviour ‘is acceptable’ Both Andrew Marr and Sophy Ridge were joined this morning by the Environment Secretary George Eustice – and much of their conversations focused on the recent lobbying debacle sparked by the former Prime Minister’s texts to the Chancellor Rishi Sunak. Cameron was attempting to secure support loans on behalf of the financial services firm Greensill Capital, but was unsuccessful and the business filed for insolvency in March. Marr questioned Eustice over whether the current lobbying rules were too soft and ineffectual: AM: Do you think that what David Cameron has done is acceptable? GE: …Well, it is acceptable because [it was] within

The Brexit charlatans are getting away with it

Opponents of demagogues from Donald Trump to Nigel Farage have suffered from a huge political disadvantage. They were either politicians who were or had been in power, and had to take responsibility for all the failures and compromises power brings as inevitably as blisters on weary feet. Or they were voters, who thought that mainstream politicians were preferable to the leaders of the far right and left. Demagogues could dismiss them as establishment lackeys, Blairites, liberal elitists, Republicans in name only, and so on. And the dismissals could work. For how many wised-up 21st century voters wants to think him or herself as some establishment drone, some dupe of a