‘Labour had the chance to reshape the country – and didn’t have the confidence to do it’

Read time: 4 mins

In brief…

• Rachel Reeves remains under fire for her ‘shambolic’ second budget, now as political rivals accuse her of misleading the public in a speech given to warn of the ‘difficult’ content it would include.
• The News Agents question whether, almost 18 months into power, Labour has already wasted opportunities to make changes to the UK.
• They say the public has already “zoned out” of the budget conversation, and that debate over Reeves intentions around the budget erodes confidence in politics – whether true or not.

What’s the story?

Rachel Reeves may now be regretting getting up so early on November 4th.

Unprecedented, the Chancellor addressed the media at 8am that day about her then-upcoming budget. She gave the vaguest of hints on what she might include, laid the groundwork for 'difficult decisions' and sparked speculation over broken manifesto pledges and huge tax rises.

She didn't need to make the speech, and no Chancellor before her had ever done so – and crucially, now what she said in it is being used by political rivals, to call for her resignation.

Or rather, what she didn't say – that amid the doom and gloom of her early-morning speech, she knew that government tax receipts (the total amount it collects from various taxes on individuals and businesses) were £4 billion higher than anticipated, but chose to instead only warn of the £16 billion impact of a productivity downgrade.

It meant what she delivered in the budget on 26 November was much less extreme that what she had previously hinted at.

Kemi Badenoch has accused Reeves of doing this to ensure her budget received a "soft landing".

“She had to paint a gloomy picture, because essentially, she knew she was going to have to raise taxes,” says Emily Maitlis.

“She didn't break the manifesto pledge on paper, she didn't raise income tax, but she definitely did raise people's taxes.”

Keir Starmer has given Reeves his full support, and insists there was no "misleading" of the public.

Has Labour already squandered its time in power?

Starmer shared his support for Reeves during a speech this morning (1 December) where he wanted to focus on Labour measures to freeze prescription prices and rail fares, and cut energy bills for the poorest people in the country.

But these small-scale measures have very little impact on the public.

“No one is listening to those little baubles that have been given out,” says Jon Sopel.

“People are much more focused on the big picture of what this budget means for them.

“I just think Labour is guilty of not having prepared what it was going to do once it came into government, and this is the most shameful part about it.”

Emily says there are already discussions happening about whether Labour is making the most of  its time in power, and that it had an opportunity in 2024 to do something “radical, big and bold” when it won the general election.

Instead, it is focused on incremental change that does very little, for the very few.

“All these moments that should be big – whether it's taking kids out of poverty, whether it's cutting costs and making fuel more affordable – they actually feel lost in the muddiness of compromise,” Emily says.

“When Labour came to power 18 months ago, it had the chance to be [Clement] Atlee, it had the chance to be [Aneurin] Bevan.

“It had the chance to reset the whole shape of the state, of taxation and our relationship to it – and somehow it didn't have the confidence to do it.”

The bigger impact of Rachel Reeves ‘misleading’ statements

Even if ‘no one is listening’ to the government, allegations that a top MP may have “misled” voters (even if strenuously denied) can still have a major impact on the country, and the public.

“It leads to a further erosion of trust in politics, in politicians, in the way we are governed, and in the sense that they're just lying to you,” says Jon.

“I think people have zoned out.

“They saw their taxes go up in the budget, and they had been told that working people's taxes would not go up.

“It may not technically be a breach of the manifesto, but it sure as hell feels like it.”

The News Agents say this incident is, once again, an example of Labour being unable to communicate its narrative – right down to the words used by the chancellor when talking about her budget.

“The language that Rachel Reeves uses drives me bloody nuts when she says: 'We're asking people to make a bit of a contribution',” Jon adds.

“It's not Remembrance Sunday, where someone's selling poppies outside the train station.

“You have no option on any of this. You are being saddled with extra taxes.”

Listen to the latest episode of The News Agents.