The Chancellor Confronts Her Most Significant Problem: The Brexit Dilemma
Rachel Reeves has handled the upcoming spending review comparable to a reluctant bather edging into cold water, striving to mitigate the discomfort through step-by-step immersion.
First Moves and Revenue Promises
She commenced dealing with the challenge of inadequate income at the close of summer. To begin with, she would not to stand by former statements that tax rises in the prior year's budget would be the last ones.
Then, earlier this month, she took a more significant move into the freezing waves. Her remarks vowed to "do what is necessary" to fund state services and control loan interest low.
Manifesto Pledge and Government Withdrawal
Within 10 days, the finance ministry had withdrawn the hint. The manifesto commitment remained intact in the end. Like every icy-water swimmer realizes, this cancelled plunge and trembling retreat is the worst of all methods. No strategy draws out the pain like indecision.
It's hard to be decisive when deciding between levels of internally generated injury.
Hope as Approach
Hope has not been a successful approach for this government. Central of the Labour leader's general election campaign was the unrealistic hope of by some means meeting citizens' desire for better government services without overturning large sums of Conservative tax cuts.
Communication Deficiency
Not once has either the prime minister or Reeves adequately expressed a sense of national purpose to explain all this pain. Partly that is a issue of charisma. Both leaders are remarkably comparable in their communicative deficiency, wooden and reticent in a way that pushes audiences back instead of pulling them closer.
Brexit Settlement and Economic Truth
Just as electoral expectations to support state services has forced the Treasury to concede that taxes must go up, the economic imperative of improving prosperity makes it more challenging to overlook the cost of separation from the European single market.
European Relationship and Talks
The government used a period experimenting in the initial phase of improved relations with the EU: proposals to remove customs checks on agricultural goods; a student movement initiative. Ambition went a further on power generation, military and protection collaboration, but nothing of substance has to date been agreed.
Diplomatic Context and Global Status
In the absence clear direction and drive from No 10, negotiations are stalled. The European Commission says single-market privileges are obtained with financial input to the continental treasury. British officials know that's the arrangement. That doesn't lead them enthusiastic for a open dispute and campaigners screaming treason over whatever price ends up being agreed.
Financial Harm and Government Language
Financial circumstances has provoked some adjustment in Labour's tone on the EU relationship. Reeves has begun identifying Brexit alongside the coronavirus crisis as a reason of financial harm that the finance ministry is working hard to address. Other ministers have emulated this, although they deliberately assign the fault to "poor negotiation terms" or "the exit process", never just "Brexit".
International Context and Long-term Outlook
The issue of the UK's future relationship with the EU can't be simplified to technical adjustments and border mechanisms when the global political landscape is in tumultuous flux. Considering everything that has happened since 2016, it feels legitimate still to be raising the core matter: were Britain's interests advanced by exiting the EU?
Conclusion
These are sobering, challenging truths about the nation's position in uncertain world affairs. It is not surprising that Starmer and Reeves shy away from the task. It would take them beyond their capabilities, into currents that they dare not resist. So as an alternative they persist anxiously pacing the shore, praying that maybe soon the tide will shift.