Rachel Reeves Dodges Key Question on Living Standards Under Labour

[Social Media]

 

Sir Keir Starmer and his chancellor, Rachel Reeves, entered office with a clear promise: to increase prosperity and put more money into people’s pockets. However, months into their tenure, tangible evidence of economic improvement remains elusive. When The Times interviewed Reeves, the key question was straightforward—will people feel better off by the end of the year? Yet, it was the one query she refused to answer directly.  

 

Despite being pressed repeatedly, Reeves sidestepped the issue, eventually stating, “This is a whole parliament project to make people better off.” Her reluctance to provide a definitive answer underscores a major challenge for Labour. The party has positioned itself as a champion of economic growth and wealth creation, yet current forecasts suggest a different reality. The Office for Budget Responsibility projects that Reeves’s tax-raising budget will likely slow growth throughout this parliamentary term.  

 

Real household disposable income, the key measure of how much money people have after accounting for taxes and inflation, is expected to rise by a mere 0.5 percent annually during this period. While stronger-than-expected wage growth has offered a glimmer of hope, economists warn that this could prompt the Bank of England to maintain higher interest rates for longer, potentially limiting financial relief for households.  

 

Reeves’s hesitation in addressing whether people will feel better off this year stems from factors beyond her control. Interest rate decisions by the Bank of England, as well as global economic shifts—such as the potential for tariffs on UK imports if Donald Trump returns to the U.S. presidency—are far more likely to dictate short-term economic conditions than any immediate policy changes by Labour.  

 

On Wednesday, Reeves unveiled a series of initiatives aimed at boosting growth without placing additional strain on government finances. These include plans to expand Heathrow Airport and reform planning regulations. However, the impact of these measures will not be felt for years, perhaps even decades.  

 

Labour remains cautious about what it perceives as a critical Conservative error—making bold promises and failing to deliver. Starmer’s chief of staff, Morgan McSweeney, has argued that this approach damaged trust in politics, a mistake Labour is determined to avoid. Consequently, Starmer and Reeves have spent much of their early tenure emphasizing the dire state of the public finances. Their message has been clear: Britain is broken, and while Labour intends to fix it, the process will take time.  

 

The party’s gamble is that by the next general election, voters will feel an improvement in their financial circumstances. However, some within the cabinet are questioning this strategy. They argue that waiting too long to deliver tangible economic benefits risks being too little, too late. As one insider put it, attempting to “fatten the pig on market day” may not be enough. With Labour’s approval ratings slipping in the polls, they may have a point.

 

Based on a report by The Times 2025-02-03

 

 

[Andycoops]

A truly desperate duo of incompetence having had many years to get it right they have shot themselves in the foot from day 1, not only with pensioners and business tax hikes but scandal after scandal just like the conservatives.

[Chomper Higgot]

The UK needs to remove the barriers placed on the UK economy by the madness of BREXIT, joining the Pan-Euro-Mediterranean Convention will be a step in the right direction, rejoining the EU Customs Union a much better option to reverse the damage done.

 

https://www.bbc.com/news/articles/cqld2n5k733o

[JonnyF]

2 Tier Keir needs to accept his mistakes for once and remove this charlatan.

 

Rachel from accounts is doing untold damage to Britain. 

 

Although I am starting to think that is part of the plan. 

[superal]

4 hours ago, Chomper Higgot said:

The UK needs to remove the barriers placed on the UK economy by the madness of BREXIT, joining the Pan-Euro-Mediterranean Convention will be a step in the right direction, rejoining the EU Customs Union a much better option to reverse the damage done.

 

https://www.bbc.com/news/articles/cqld2n5k733o

Trading with Europe could be beneficial for the UK but at what cost ? fishing concessions ?  I think their is little doubt that the EC would welcome back the UK under EU rules only .  I cannot understand how Starmer can re-negotiate a new relationship with Europe when the nation voted for Brexit . Any U turn , no matter how you want to spin it , would be acting against the nations referendum .   Free movement of labour should be a no go and also any political alliance .

[Chomper Higgot]

6 minutes ago, superal said:

Trading with Europe could be beneficial for the UK but at what cost ? fishing concessions ?  I think their is little doubt that the EC would welcome back the UK under EU rules only .  I cannot understand how Starmer can re-negotiate a new relationship with Europe when the nation voted for Brexit . Any U turn , no matter how you want to spin it , would be acting against the nations referendum .   Free movement of labour should be a no go and also any political alliance .

The only thing on the BREXIT ballot was leave the EU or remain in the EU.

 

You might recall the Leave Campaign proposing a range of ‘deals’, notably the ‘Norway Model’ that would allow the UK to remain in European Economic Area while leaving the EU.

 

Any mention of such deals evaporated immediately the result was announced and the Tories went for the most damaging BREXIT they could get away with.

 

Reversing that damage is an obvious path to improving the UK economy.

 

[Bkk Brian]

9 hours ago, Social Media said:

The party’s gamble is that by the next general election, voters will feel an improvement in their financial circumstances.

Gambling with peoples lives. Bit like their odds on gamble that 4,000 old people would die this winter due to their policies.

 

Cut to winter fuel payment could kill 4,000 people, Labour’s own research suggests

https://www.independent.co.uk/news/uk/politics/winter-fuel-payment-cut-labour-deaths-b2609340.html

[superal]

16 minutes ago, Chomper Higgot said:

The only thing on the BREXIT ballot was leave the EU or remain in the EU.

 

You might recall the Leave Campaign proposing a range of ‘deals’, notably the ‘Norway Model’ that would allow the UK to remain in European Economic Area while leaving the EU.

 

Any mention of such deals evaporated immediately the result was announced and the Tories went for the most damaging BREXIT they could get away with.

 

Reversing that damage is an obvious path to improving the UK economy.

 

Are you advocating a return to the EU , reversing Brexit , supporting Starmers clandestine actions  ?  If he is opposing the referendum and the will of the people then maybe on a similar parallel a new general election should be approved .

What's good for the goose is good for the gander .

[Chomper Higgot]

3 minutes ago, superal said:

Are you advocating a return to the EU , reversing Brexit , supporting Starmers clandestine actions  ?  If he is opposing the referendum and the will of the people then maybe on a similar parallel a new general election should be approved .

What's good for the goose is good for the gander .

I absolutely advocate returning to the EU.

 

Starter’s moves are not clandestine, they are widely reported and widely discussed, including by Starmer and the Labour Party.

I have no expectation that returning to the EU will occur in this Parliament, but it will increasingly climb in the political discourse. It will happen once the Tories are back to their senses.

 

 

[Nick Carter icp]

38 minutes ago, Chomper Higgot said:

The only thing on the BREXIT ballot was leave the EU or remain in the EU.

 

You might recall the Leave Campaign proposing a range of ‘deals’, notably the ‘Norway Model’ that would allow the UK to remain in European Economic Area while leaving the EU.

 

Any mention of such deals evaporated immediately the result was announced and the Tories went for the most damaging BREXIT they could get away with.

 

Reversing that damage is an obvious path to improving the UK economy.

 

 

"Evaporated" is in Remainers voting against all propositions with them hoping for the Yes vote to be overturned and the UK remaining in the E.U ?

   They voted against everything and the only thing left was a hard Brexit ?

[JonnyF]

1 hour ago, Chomper Higgot said:

I have no expectation that returning to the EU will occur in this Parliament, but it will increasingly climb in the political discourse. It will happen once the Tories are back to their senses.

 

😄

 

No chance.