Rachel reeves

Thursday

The Spectator

Portrait of the week: Tulip Siddiq quits, Sturgeon splits from husband and Trump spared jail

Home Tulip Siddiq resigned as economic secretary to the Treasury, although she was found not to have broken the ministerial code; she had, however, lived in a flat provided by allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh, apparently under the impression that the flat was a gift from her parents, despite having signed a Land Registry transfer form for it. Rachel Reeves, the Chancellor of the Exchequer, flew to China and met He Lifeng, one of the four vice-premiers. In her absence the cost of government borrowing rose again, with the yield on 30-year gilts rising to 5.42 per cent, the highest for 27 years. Downing Street

Matthew Parris Matthew Parris

Why was everyone fooled by Rachel Reeves?

It is some time since I could claim any close acquaintance with the daily skirmishes of workaday Westminster. From risers and fallers on the stock exchange of parliamentary esteem I stand somewhat aside these days: no longer a war correspondent sending back dispatches from the battles between tribes in the febrile atmosphere and smelly carpets of that suffocating fake-gothic palace. Such warfare needs to be reported, but in this I yield to colleagues better placed to report. It seemed Starmer and Reeves had allowed themselves to be persuaded that what they were not was enough If I’ve had any useful contribution – if as a commentator I’ve shed any light

Thursday

Kate Andrews

Borrowing costs soar – will Rachel Reeves have to go back on her word?

12 min listen

Long term borrowing costs for the government have reached levels not seen since 1998, and 10 year UK gilts are now at their highest point since the 2008 financial crash. Both surpass the levels seen during the Liz Truss premiership – and this hasn’t gone unnoticed by the former PM. A set of similar circumstances, but could the consequences be the same? What are the economic – and political – challenges facing Keir Starmer and Rachel Reeves? James Heales speaks to Kate Andrews and Katy Balls to unpack the latest tranche of economic data. Produced by Patrick Gibbons. 

Monday

The Spectator

The growing wealth gap between Britain and the US

New year predictions are always rash, but it feels as though one aspect of the story of 2025 can already be written. The gap between the economic fortunes of the US and Europe will continue to widen – and Britain will be trapped very much on the European side of the divide. In three weeks’ time the US will have a new leader, one who will unashamedly put the interests of US business first. Donald Trump’s threat of punitive tariffs may or may not be realised (as in his first term, it could prove to be a negotiating tool to press for the removal of restrictions on US exports and

James Heale James Heale

Rachel Reeves’s new year’s resolution

On Christmas Day, 12 million people watched the will-they-won’t-they couple Smithy and Nessa finally marry after 17 years in the finale of the hit BBC comedy series Gavin and Stacey. Yet for all the cheery sentiment, it’s a depressing thought that – statistically – in the real world the characters would be earning roughly the same amount at the series’ end in 2024 as they were at its beginning in 2007. Rachel Reeves’s task this year is to spring Britain from its low-growth trap. The early signs are not encouraging. Those captains of industry whom she once so assiduously courted are turning hostile. The Confederation of British Industry says private

Martin Vander Weyer Martin Vander Weyer

My business predictions for 2025

Headed for ‘the worst of all worlds’ is not where any of us would wish to find ourselves at the start of the new year. But that was the phrase used by the CBI economist Alpesh Paleja to sum up the predictions of member businesses – of reduced hiring and output, rising prices and weak growth. Since that survey, a revision to zero of the official growth figure for the third quarter of 2024 and reports of depressed pre- and post-Christmas consumer spending have provoked even darker whispers of a return to recession. Whence cometh such pessimism? Has it bubbled out of the Tories’ black hole of fiscal shame? Can

Friday

James Heale

Is Rachel Reeves turning into George Osborne?

18 min listen

Labour is supposed to be going for growth, so Keir Starmer and Rachel Reeves will be disappointed with the news today that the economy unexpectedly shrank in October, and for the second month in a row. Rachel Reeves’s mood seems to have visibly changed in the last month or so, is she having her George Osborne moment? And can she turn things around, or have the dynamics of the Labour–UK plc relationship changed irreversibly?  James Heale speaks to Katy Balls and Isabel Hardman. Produced by Patrick Gibbons and Oscar Edmondson.

Tuesday

James Heale

Spending review: a return to austerity?

13 min listen

Preparations are stepping up for the government’s spending review, due in June. The Chancellor has taken a more personable approach to communicating with ministers, writing to them to outline how they plan to implement the Budget – with a crackdown on government waste and prioritising key public services. So, expect money for clean energy, the NHS, and more ‘difficult decisions’. Will Rachel Reeves’s war on waste work? How will this all go down within the Labour Party and the Cabinet? James Heale speaks to Katy Balls and Kate Andrews. Produced by Oscar Edmondson.

Thursday

The Spectator

Labour’s confidence tricks

There is nothing new, nor necessarily fatal, about making a poor start in government. Margaret Thatcher had a torrid first couple of years in office, set back by galloping inflation and mass unemployment, before she found her direction. Those who assume that Keir Starmer is doomed to be a one-term prime minister thanks to his plunging popularity are speaking too soon. The resignation of Louise Haigh over a historic fraud conviction will swiftly pass. The mini-scandal of freebies accepted by government ministers, which kept Fleet Street occupied over the summer, has already been largely forgotten. Starmer is good at setting targets, rather less good at coming up with any realistic

Thursday

Kate Andrews

What Scott Bessent’s appointment means for Trump 2.0

How rare it is to be given a second chance. That’s what the American people have handed Donald Trump. His second shot at the presidency means avoiding past mistakes, which in TrumpWorld means finally harnessing the full power of the state. Even in the last year of his first term, Trump was struggling to fill all the political appointment vacancies he had at his disposal. This was the consequence of never developing a real plan for governing that went beyond chanting ‘Drain the swamp’. Elon Musk talked down Bessent as the ‘business-as-usual choice’, but that’s what markets are looking for This time round, things are going to be different. Trump

The Spectator

Letters: Labour’s attack on farmers

Losing the plot Sir: Your leading article ‘Blight on the land’ (23 November) is right to call out the hypocrisy and vindictiveness of Chancellor Rachel Reeves’s Agricultural Property Relief cuts. Sadly, this is just one part of the Labour government’s multi-pronged attack on farmers, in sharp contrast to the promises they made before the general election. The 7 per cent rise in the minimum wage and the 9 per cent jump in employers’ national insurance contributions will hit all businesses, but given the 56 per cent slump in farm incomes over the past 12 months, farming is one of the sectors least able to cover such increases. The government also

Thursday

The Spectator

Rachel Reeves can still repair the damage done to farming

The Chancellor of the Exchequer found time this week to edit her own page on the social media site LinkedIn. She had, it appeared, fallen into error by saying that she had worked as an economist for the Bank of Scotland. Her role had in fact been humbler. No one should be criticised for seeking to correct a mistake. There is no fault in acknowledging that your claims to economic authority were exaggerated, and no shame in embracing humility. Which is why Rachel Reeves should apologise again – without further delay – to Britain’s farmers. For the grotesque, unjust and vindictive tax assault she has launched on the nation’s food

Martin Vander Weyer Martin Vander Weyer

What does the City really think of the Chancellor?

Regular invitations to Mansion House banquets petered out after I asked a shifty-looking waiter for a glass of champagne and he told me he was a deputy governor of the Bank of England. So I can’t report firsthand whether last week’s speech by Chancellor Rachel Reeves was greeted by assembled financiers with napkins on their heads or cries of ‘By George, I think she’s got it!’. What I can say is that – her text having been largely leaked beforehand – she was well upstaged by Governor Andrew Bailey’s unexpected attempt to reopen the Brexit debate; and that she seems to ‘get’ the City a lot better than she understands

Thursday

James Heale

Will Reeves’s pensions shake-up really boost growth?

13 min listen

The Chancellor is giving her first Mansion House address tonight, and she will be majoring on pensions, suggesting that public sector pension funds need to be expanded. But is this the road to growth? James Heale talks to Katy Balls and Kate Andrews. Produced by Cindy Yu.

Friday

James Heale

Can Labour save its Budget?

14 min listen

The fallout from Labour’s Budget continues. On the media round this morning, Darren Jones, Chief Secretary to the Treasury, admitted that it will hit working people, and the cost of government borrowing has only risen since Rachel Reeves delivered her speech to Parliament. Katy Balls, Kate Andrews and James Heale take us through the reaction from various groups, including small business owners, farmers and the markets. Is the Budget unravelling? Also on the podcast, they look ahead to tomorrow’s Tory leadership result; could low turnout make a difference? Produced by Patrick Gibbons.

Thursday

The Spectator

Rachel Reeves is taking us back to the 1970s

The first fiscal event to be delivered by a female Chancellor of the Exchequer is a landmark moment, but in every other regard this Budget was a return to the familiar, and failed, approach of Labour governments past. This was the Life on Mars Budget – a journey back to the 1970s, only without the cheap booze and fags. Tax rises, increased borrowing, a bigger state, spending on public services unaccompanied by meaningful reform and additional costs for those businesses which create wealth – we have seen all these before and we know they are the markers of decline. This Budget was a journey back to the 1970s, only without

Peter Mandelson

My bid to be chancellor of Oxford

I have spent the past couple of weeks in Oxford rediscovering the art of conversation while campaigning for election as the university’s chancellor. I have sung for my supper in Christ Church Cathedral before being questioned in the SCR on my fitness for the role, and I performed again at evensong at Univ before debating postcolonial reparations over vegetable broth and venison. I have been gifted cyclamens following visits to St Hilda’s and Corpus. At St Hugh’s my understanding of the Higher Education (Freedom of Speech) Act was taken apart by the law don, while at Worcester I was challenged on the state of Britain’s naval hard power and the

Wednesday

Katy Balls

Labour’s low growth Budget

15 min listen

Rachel Reeves has announced that taxes will rise by £40 billion in Labour’s first Budget for 14 years. The headlines include: an increase in employers’ National Insurance contributions from April to 15 per cent, raising £25 billion; that the freeze on income tax and National Insurance thresholds will not be extended past 2028; that the lower rate of capital gains tax will be raised from 10 per cent to 18 per cent, and the higher rate from 20 per cent to 24 per cent; that fuel duty will remain frozen for the next two years; and the introduction of VAT on private school fees from January. The Chancellor didn’t want

Monday

James Heale

Budget week: Labour braced for backlash

13 min listen

It’s Budget week (finally)! How this week goes will set the tone for Labour’s first year in office. It’s fair to say that expectations are relatively low – with the Prime Minister himself warning of ‘painful decisions’ ahead. We know a lot of what will likely be included and Treasury sources are keen to play down talk of any Budget rabbits – suggesting a mix of the measures currently being discussed in the media. So what should we expect? And can Labour ride out the week unscathed? Also on the podcast, Labour have suspended the whip for Mike Amesbury, MP for Runcorn and Helsby, after he appeared to threaten a

Wednesday

Martin Vander Weyer

Wahed’s alarming Tube adverts

As the interminable Budget wait goes on, so does the trawl through the Chancellor’s bin bags. I refer to the old tabloid method of digging in celebrities’ dustbins for evidence of depravity or scandal; in Rachel Reeves’s case, that would mean piecing together shredded Treasury analyses on all the various tax wheezes floated since July. One curry-smeared paper no doubt addresses the pros and cons of an inheritance raid on ‘aristocrats and landowners’; beneath the Red Bull cans and pizza crusts, might there be another headed ‘Clawbacks on Enterprise Investment Scheme’? Not that there have been substantive rumours, mind you. But that’s rather the point: having had so many draft