Labour's economic stance has dramatically shifted following the recent Budget, prompting a renewed focus on the Treasury. The jitters that spread post-Budget have spurred Labour into action, with Rachel Reeves at the helm, urgently crafting plans to revitalize the economy. This urgency comes amid significant "argy bargy" with unions and robust discussions on how best to stimulate growth. Reeves, whose strategy was conceived prior to the Budget, now faces increased pressure to address business concerns vocally.
Reeves plans to unveil bold proposals in her upcoming speech next Wednesday. These include streamlining planning regulations and proposing a new runway at London's Heathrow Airport. Her rhetoric has recently mirrored that of a Conservative chancellor, emphasizing planning reforms and courting major AI firms. A senior source underscored this shift, noting that "move at speed is much clearer" now within Labour's economic strategy.
The Labour Cabinet has transitioned from being perceived as inexperienced to showing signs of settling into their roles. Evidence suggests they are no longer apprentices; they have embraced the challenges of governance. However, the metrics for their core objective—enhancing UK prosperity—remain inconsistent and, at times, discouraging.
Critics argue that Labour's early attempts to prepare for government fell short. A Whitehall source remarked, "they lost time because the preparing for government team wasn't really preparing for government – they had the opportunity to come in and show what they were made of and they fluffed it." This sentiment reflects broader skepticism about Labour's initial pro-business stance, which some perceive as mere posturing up until the Budget.
Treasury insiders reveal that Reeves immediately began pushing for innovative economic growth strategies post-Budget. She has been described as "banging the table" with officials to generate fresh ideas. The urgency is palpable, as a senior source highlighted how "the market wobble brought that frustration to the fore – we talked about growth for a long time… I think it's begun to put rocket boosters under that."
Labour's economic plans are not without their challenges. A senior Labour MP cautioned, "The levers you pull don't just connect to something – the dead hand of the Treasury can't simply control economic growth." This highlights the complexities involved in implementing effective economic policies.
Amidst this backdrop, union leaders express skepticism about Labour's rapid pivot towards growth. One described it as a "cross your fingers behind your back moment," suggesting a level of uncertainty in Labour's newfound urgency. Meanwhile, senior sources within Labour remain optimistic about their ability to navigate these challenges and propel the economy forward.
Reeves' upcoming speech aims to convey her optimism and determination to expedite economic recovery. She intends to present herself as proactive and committed to driving economic growth. A senior source noted that Reeves is determined to "move at speed," reinforcing her resolve to address business concerns urgently.