Rachel Reeves said this week she “listened” to the voters. If this is the case, you will know very well that it is not liked: not only on the policy of paying fuel in the Malaysian winter, but for its performance since he took office.
She is preparing to put it Looking for spending On Wednesday, the first adviser to the Labor Party has known for nearly 15 years that this is a decisive moment for both the Sir Kerr Starmer government and its position.
A few occupations 11 Downing Street have witnessed their approval categories that decrease so quickly. Opinion polls indicate that they are moving in an abyss of the insecurity that was previously occupied by former conservative adviser Koasi Kawrang at the time of his sentence in 2022, “the mini budget”.
overlap Refiz Removing fuel subsidies from 10 million retired people last July, while revealing the receipt of her free clothes, created a toxic aura around her. “This is when people formed a moral judgment on us,” said one of the newly elected deputy.
The autumn budget, with the increasing business tax of 25 billion pounds, was established, new ravages of hostility: Britain’s companies-which greatly won during a two-year magic attack in the opposition-felt treason by the advisor. Meanwhile, the representatives of the Labor Party fell from its 5 billion pounds plan to reduce the social welfare payments for patients and the handicapped.
One of his close colleagues said: “She is courageous enough and honest enough to make difficult decisions.” “I knew that he would make her unpopular.”
The big question this week is whether Reeves can start turning things.
A review of spending is the moment when Reeves – and the government – appear – what they really care about. Money will be allocated to capital departments and projects for the rest of Parliament. Options will reveal priorities.
For Reeves, this is an opportunity to show that it is not a fragmented counting machine, obsessed with financial rules, but it has a vision of the country and shake it from the growth that has lasted for nearly 20 years.
The completion of the winter fuel policy for this week-restoring the benefit to most of the retirees-is the first stage, which Reeves hopes to be the moment of resetting its advisor.
Its basic message will be on Wednesday that the “options” that she took-including maintaining a grip in daily spending-created a financial space and confidence in the market to launch an additional amount of 113 billion pounds to spend on capital on Parliament.
“The idea that it is George Osborn in disguise is ridiculous.” “This is absolutely not the austerity spending review.”
Daily spending will generally increase by 1.2 percent at the real value every year for the rest of Parliament. Health and defensive spending will swallow the lion’s share of additional cash, leaving real discounts in some “unprotected” departments.
Reeves will argue that this is wise – but not intense – financial management. You will say that the current spending will be higher by 190 billion pounds on Parliament compared to the Conservative Party’s plans: its first budget has witnessed that taxes increase by 40 billion pounds annually and rise by 28 billion pounds annually.
But Reeves’s focus will be on additional capital – aims to enhance Britain’s growth potential – as the consultant moves from Scroge to Lady Foundiful. All nuclear power plants, railways, roads and housing will be heated with borrowed funds.
The Chancellor’s team believes that Reeves is already running the corner in terms of its perception in the Labor Party, after it began its long retreat in paying fuel in the winter and hinted that softening the luxury policies on the road.
It is still the most popular membership in the cabinet among the members of the Labor Party, although the classification of its approval over the past two months has improved by 13 percentage points to only Minus 27.8, according to Labourlist A website.
But some believe that it is still in trouble, and that it retracts it on fuel payments in the winter leaves it vulnerable to pressure on other controversial issues, including a 5 billion pounds plan to reduce the enlarged luxury bill in the country.
One of the Labor Party said: “The transition to winter fuel helps in the short term, but it undermines it in the medium term, when it comes to its authority and its ability to obtain a package of social welfare reform through an unknown.”
The Reeves team is a publicity in distinguishing between the winter fuel-where the chancellor says it “listened to people’s concerns”-and its preparation for the bending of the concerns raised by the Labor Party deputies.
For example, the advisor is under severe pressure from the Labor Party deputies to end the benefit of the benefit, “We have to give priority,” they said. “Voters are not in the same place of the party.”
They argue that the public is more sympathetic to the representatives of the Labor Party to design Reeves to reduce spending on social welfare, although it is clear that the public has no vote in the House of Commons. Large parliamentary battles are waiting for us.
John McDonnell, the former shadow adviser and is now an independent deputy, said that Reeves face another problem: The big ads on Wednesday about capital spending may not result in the political profits you expect.
He said: “It takes years spending for years to achieve political results, while the discounts in spending revenues on services, such as the services of the council, feel negatively.” Reeves tells colleagues that the public has already adopted plans previously announced to enhance local transportation plans.
Meanwhile, REEVES has been exposed through external events – especially the commercial wars of the United States Donald Trump and the high global borrowing costs – leaving it badly before the autumn budget for this year. It has 9.9 billion pounds from “Headroom” against its borrowing rules.
Although the gross domestic product in the first quarter was stronger than expected, this was reduced through prediction discounts from organizations including the International Monetary Fund and the Organization for Economic Cooperation and Development.
Cathal Kennedy, UK’s chief economist at RBC Capital Markets, warned that once the spending review is outside the way the “speculation machine” will increase in the budget, with investors discuss the possibilities of a new round of tax increases.
Making things more difficult is the Reeves decision to raise large personal tax taxes from value -added tax, income tax and national employee insurance, forcing the cabinet to examine the most tightly targeted measures. “None of this leads to long -term decisions,” he said.
“Given that she left herself this wonderful space, this means that she is at the mercy of financial and economic events.”
Nigel Faraj, the UK reform leader, recently claimed that he had never seen “any desperate person from his depth” as Reeves, although the advisor is currently enjoying the strong support of the party leader most important in Starmer.
“Care is 100 percent behind Rachel,” said one of the Prime Minister’s ally. “Her position is completely good. At the present time, challenging it is voters. O workers are now unable to stand on it,” said Labor Party and former minister.
Reeves says she “listened” to what people say, and on Wednesday she will respond. Its decisions to review spending will provide a platform for the upcoming electoral campaign for the party. The hardness of this basic system is about to test.
“We know that the voters are desperate for change, but we believe the plan is working,” the counselor said. “Rachel does not like anything more than proving people who reduce her mistake.”
Data depicted by Amy Burit and Jonathan Vincent
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