The chancellor spent most of her first six months issuing dire warnings in regards to the calamitous state of the general public funds she inherited.
However now, in a dramatic change of tone, Rachel Reeves is celebrating the UK’s financial prospects.
Impressed by Donald Trump’s financial boosterism, and regardless of the UK’s flatlining development figures, she instructed Trevor Phillips she’s spent the previous few days in Davos “shouting on the world stage about all the pieces our nice nation has to supply”.
“My enthusiasm and pleasure… has by no means burned brighter.”
However this optimistic message is not simply a part of a brand new worldwide gross sales pitch, a riposte to critics who imagine the chancellor broken investor confidence within the UK along with her gloomy earlier prognosis.
As an alternative, it is a part of the federal government’s drive to reconnect with companies bruised by her tax-raising finances – an try to display that financial development genuinely is its primary precedence – on the expense, maybe, of all else.
After all, the chancellor argues that development is required to ship the extent of public companies voters anticipate from a Labour government – with out fast enhancements to the general public funds, departments are prone to face austerity-level cuts.
Now we’re lastly getting extra element on the sensible technique to ship the expansion that has proved so elusive for successive governments lately – however most of the measures concerned are extremely controversial.
Learn extra: Reeves to seek billions from corporate pension surpluses
From decreasing planning hurdles to demanding regulators strip out crimson tape, in some methods, the Labour authorities is now in search of to enact most of the insurance policies promised by Liz Truss.
Requested in regards to the comparability by Trevor Phillips this morning, Ms Reeves did not deny the similarity, arguing solely that “we’re doing sensible issues to get that development, not simply speaking about it”.
On Wednesday in a giant speech on development, we’ll hear extra about these sensible steps.
The largest anticipated announcement is in regards to the long-awaited expansion of Heathrow Airport, in addition to plans for Gatwick and Luton.
File pic: AP
As an emblem of going for development above all else, it could not get a lot larger, however the motive the undertaking has did not get off the bottom is that so many individuals object to it so passionately – for a variety of causes, from concern over emissions and our internet zero commitments to noise air pollution.
Ms Reeves instructed Trevor Philips at present the choice can be taken with “collective ministerial accountability”.
Which may be simpler mentioned than accomplished.
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Beforehand, many members of the cupboard, together with Sir Keir Starmer, Setting Secretary Steve Reed and Vitality Secretary Ed Miliband voted in opposition to increasing the west London airport.
Supporting the plans will certainly be uncomfortable for a lot of on the Labour benches, particularly with the Mayor of London so implacably opposed.
Requested this week if he’d take into account resigning over it, although, Mr Miliband responded: “Do not be ridiculous, no.”
Reeves: ‘Comfortable to have a look at’ becoming a member of pan-EU buying and selling group.
Maybe the clearest indication of the federal government’s financial focus comes with the chancellor’s willingness to discuss the possibility of joining a European customs grouping, the Pan Euro Mediterranean Conference.
“We’re completely comfortable to have a look at these proposals,” she instructed Trevor Phillips – fairly a distinction to the non-committal solutions given by different ministers earlier this week.
The Conservatives are predictably up in arms, with Andrew Griffiths, the shadow enterprise secretary, fast to ring the Brexit alarm bell.
“We should keep away from undoing Brexit by the again door by aligning with the EU’s low development mannequin,” he mentioned.
Whereas the prime minister has lengthy promised a “reset” in relations with the EU, any trace of backpedalling on Brexit is so politically delicate that dialogue about shifting in direction of a more in-depth financial relationship is all the time muted.
The very fact Ms Reeves is even wanting into that is maybe, greater than something, an indication of their need to point out they’re keen to contemplate all choices.
However as with the airports, it is prone to be a really very long time earlier than any of those pro-growth intentions have a sensible affect on GDP.
