Labour insiders claim that Chancellor Rachel Reeves’ fiscal strategy is on the brink of collapse, with the promise to keep public finances in balance by 2030 set to be ditched. The internal rebellion led by Deputy Prime Minister Angela Rayner has seen Reeves U-turning on cuts to winter fuel payments, and sources suggest she’s preparing fresh concessions on disability cuts.
Reeves’ commitment to fiscal responsibility is being tested as inflation surges beyond her control and borrowing reaches record highs. Despite assertions from Downing Street that no additional tax rises are planned, Labour insiders believe Reeves will be forced to break her promise not to raise taxes.
The situation has drawn comparisons to former Prime Minister John Major’s infamous Black Wednesday, which marked the end of his premiership. If Reeves’ fiscal rules are abandoned, it could lead to a loss of credibility with business leaders and a collapse in public trust. The government is bracing for a “black economic autumn” that will test Starmer’s authority as prime minister.
Insiders suggest Reeves has become isolated and is seeking advice from colleagues on how to address the mounting challenges facing her strategy. With interest rates predicted to remain stagnant and growth figures expected to disappoint, Reeves’ options are dwindling, leaving her with no choice but to amend her fiscal rules.
Source: https://www.dailymail.co.uk/columnists/article-14745733/The-end-Rachel-Reeves-Furious-Labour-insiders-tell-theres-blood-water-shes-hike-taxes-reveal-pathetic-new-tactic-DAN-HODGES.html