The problem that Reeves had to deal with in her November 2025 budget was how to reverse the increasing likelihood of Reform becoming the largest party in the 2029 general election. On this measure the budget will most likely be a failure. While we can all feel a sense of relief that she has, under … Continue reading Can Reeves’ Budget Save Labour?—Editorial
Rachel Reeves
Rachel Reeves’ Budget Dilemma – Households and Governments—Editorial
Rachel Reeves will deliver her second budget on 26th November, facing a serious dilemma of her own making. By adopting two strict fiscal rules that limit government spending without tax rises, and simultaneously pledging not to increase taxes on working people during this parliament, Reeves has boxed herself into a narrow and politically dangerous corner.When … Continue reading Rachel Reeves’ Budget Dilemma – Households and Governments—Editorial
Starmer Shuffles—Editorial
As we go to press it appears that Starmer has made his first move against his chancellor Rachel Reeves. Starmer has no understanding of economics but he does grasp that the huge drop in Labour’s position in the polls can mostly be explained by the economic policies that Reeves is following. Darren Jones, who had … Continue reading Starmer Shuffles—Editorial
Starmer and Reeves’ PIP U-turn —Editorial 1
As we go to press, it appears the government has performed a partial U-turn on PIP (Personal Independence Payment) reforms. From what we understand, current recipients of PIP will continue to receive their payments. However, new applicants with identical medical conditions may not qualify, as new eligibility criteria will now apply only to future claims. The result is a two-tier … Continue reading Starmer and Reeves’ PIP U-turn —Editorial 1
Labour Needs a U-Turn in Economic Policy—Editorial
Rachel Reeves' position as Chancellor is growing increasingly precarious. She fought the 2024 general election on a platform defined by strict fiscal rules, a refusal to raise income taxes, and a pledge to deliver economic growth. It was a politically calculated stance—economically incoherent, but designed to appeal to Conservative-leaning voters whose support Labour believed it … Continue reading Labour Needs a U-Turn in Economic Policy—Editorial
The Workhouse Party
Keir Starmer took a decision some years ago to change the electoral base of the Labour Party so that many people, who would traditionally vote Conservative or Liberal Democrat, might now vote Labour or at least abstain from voting for their usual party. A major tactic to achieve this result was a commitment to fiscal rectitude. … Continue reading The Workhouse Party
Reeves’ Debt Dexterity—Editorial
All are agreed. Britain needs large increases in government investment if the standard of living of the British people is to be improved. All are also agreed that the government does not have the money to make the required investments. We are told that government current spending on teachers, doctors, armed forces etc is greater than taxes … Continue reading Reeves’ Debt Dexterity—Editorial
Political parties and national debt—Editorial
The size of the national debt is the topic of the moment. Rachel Reeves found a difference of some £22 billion in the day-to-day spending announced by the Tories in the spring Budget in March 2024 and what they actually expected to spend. This implied a £22 billion increase in the national debt. Reeves called this a … Continue reading Political parties and national debt—Editorial
The father and mother school of economics
By Eamon Dyas In 1992, a year before she died, the American academic and mother of Oliver Letwin, Shirley Robin Letwin, published a book entitled “The Anatomy of Thatcherism”. In this she explored the nature of what has come to be known as Thatcherism. It is an interesting book with several insights into the concept … Continue reading The father and mother school of economics
Reeves in a Straightjacket—Editorial
The ritual of the annual Mais lecture took place on 19th March. The Mais lectures have been taking place since 1978. The year is not accidental. Thatcher was about to come to power. She proposed to abandon the postwar economic consensus of a managed economy in which the state assumed responsibility for economic areas considered crucial to economic success: health, … Continue reading Reeves in a Straightjacket—Editorial
Taxing Issues
Martin Seale Jeremy Hunt’s November Autumn Statement was a clever piece of work. It had two objectives. Firstly, to win the next general election. Secondly, if the Tory Party did not win the next general election, to guarantee that any Labour administration would fail. Hunt’s trump card in achieving this dual objective is the fiscal rule book. Hunt, … Continue reading Taxing Issues
Labour’s Economic Model – Trust the Private Sector
Martin Seale The speech by the Shadow Chancellor, Rachel Reeves, to the 2023 Labour conference shows that a Starmer government could rapidly become dysfunctional. In her speech to the 2023 Labour Party conference, Rachel Reeves stated “Today, I make this commitment to you, and to the country: Out of the wreckage of Tory misrule, Labour … Continue reading Labour’s Economic Model – Trust the Private Sector
Tory and Labour U-turns on Aid to Developing Countries
(The image above comes from the International Development Committee) Michael Murray Introduction The UN requires that countriesallocate 0.7% of their Gross National Income (GNI) on Official Development Assistance (ODA) for the purposes of the economic development and welfareof developing countries. TheInternational Development (Official Development Assistance Target) Act 2015 lays down how the UK will meet this requirement … Continue reading Tory and Labour U-turns on Aid to Developing Countries
An Active State—Rachel Reeves in America
Martin Seale Rachel Reeves made an interesting presentation to the Peterson Institute in Washington DC on 24th May. The speech was accompanied by a 33 page document called “A New Business Model for Britain” in which it was stated: “The causes of Britain’s economic weaknesses run deep, however. For too long, Britain has been held back by two misguided … Continue reading An Active State—Rachel Reeves in America
Labour under Blair and Starmer
The Labour Conference and the Party under Blair and Starmer By Eamon Dyas What can we take from the Labour Party Conference at Liverpool? Keir Starmer acknowledged the importance of trade unions several times in the course of his speech and he indicated that he understood the relevance of proper training schemes and apprenticeships for … Continue reading Labour under Blair and Starmer
Rishi Sunak’s Financial Statement
Editorial 1 Early on in his dismal Financial Statement Rishi Sunak said: “At a time when the OBR has said that our fiscal headroom could be “wiped out by relatively small changes to the economic outlook,” it is right that the central fiscal judgement I am making today is to meet our fiscal rules with a … Continue reading Rishi Sunak’s Financial Statement
“Time for a new Parliamentary Party of the Left?”
Diary of an ex-Corbyn foot soldier (February, 2022) Dictionary definition of “foot soldier”: “…a dedicated low level follower…” Michael Murray: murraymicha@gmail.com; Facebook: Michael Murray London On 25th January, the Labour Party National Executive Committee (NEC) voted 24 - 13 against a motion calling for the Parliamentary Labour Party (PLP) Whip … Continue reading “Time for a new Parliamentary Party of the Left?”
The Levellers — Editorial 1
Keir Starmer repeats, at every opportunity, that his main objective is to win the next general election. This is a welcome change of objective. In 2019 Starmer seemed determined to lose that general election. Labour lost the 2019 general election because they attempted to reverse the result of the 2016 Brexit referendum. Starmer was the main architect of … Continue reading The Levellers — Editorial 1
Labour Affairs 