Please, Rachel Reeves, define ‘austerity’

What is a working person? This is the question Keir Starmer and other members of his Cabinet struggled to answer over the past week or so. Labour’s flip-flopping is in many ways emblematic of the clash between political rhetoric and fiscal reality.

And there is another term that is probably much harder to define, one that has dominated the conversation about the public finances over the last 14 years. That word is austerity. It has been a convenient catch-all for critics of the coalition’s attempt at fiscal retrenchment, and arguably subsequent Conservative fiscal policy. But with Labour about to announce its first Budget in 14 years under somewhat gloomy circumstances, they may find it difficult to avoid being tarred with that brush.

But what does austerity really mean? The traditional definition is taking measures to reduce the deficit. So when Keir Starmer said yesterday that tax rises were needed to prevent austerity, too few pointed out that tax rises are private sector and taxpayer austerity.