Rachel Reeves Faces A Most Significant Problem: The Brexit Bind
Rachel Reeves has tackled the upcoming spending review similar to a hesitant bather edging into cold water, striving to ease the hardship through incremental immersion.
First Moves and Revenue Commitments
Reeves began addressing the problem of limited income towards the end of the summer months. At first, she refused to uphold former statements that increases in taxation in the prior year's financial statement would be the last ones.
Later, earlier this month, she took a more significant stride into the icy waters. Her address vowed to "do what is necessary" to finance public services and keep debt expenses under control.
Manifesto Pledge and Political Backtrack
In just 10 days, the exchequer had withdrawn the hint. The election promise was upheld in the end. Like every freezing-water swimmer realizes, this halted immersion and trembling withdrawal is the least effective of all methods. No tactic prolongs the pain like hesitation.
It is hard to be firm when selecting between levels of personally caused damage.
Hope as Approach
Optimism has not been a effective strategy for the administration. At the core of Keir Starmer's general election campaign was the vain expectation of in some way fulfilling voters' call for better public services without undoing billions of pounds of Tory tax cuts.
Communication Shortcoming
Never has both Starmer or Reeves successfully expressed a feeling of national purpose to validate all this difficulty. Partly that is a problem of personality appeal. Both leaders are strikingly comparable in their communicative deficiency, wooden and reticent in a way that pushes listeners back instead of drawing them towards them.
Brexit Agreement and Financial Reality
In the same way that electoral expectations to support public services has pushed the Treasury to concede that revenue must go up, the commercial requirement of boosting growth makes it ever harder to ignore the cost of separation from the EU market.
European Relations and Negotiations
The government spent a year experimenting in the shallow end of closer ties with the European Union: proposals to eliminate customs checks on agricultural goods; a youth mobility scheme. Aspiration went a more substantial on energy, armed forces partnership, but no significant agreements has so far been signed.
Diplomatic Situation and International Standing
Lacking specific instruction and impetus from the prime minister's office, negotiations are stuck. Brussels authorities says economic advantages are obtained with contributions to the continental treasury. Government representatives know that's the agreement. That doesn't cause them eager for a public row and campaigners howling betrayal over any cost ends up being paid.
Financial Damage and Government Terminology
Financial circumstances has provoked some adjustment in Labour's tone on the EU relationship. Reeves has started naming EU withdrawal alongside the coronavirus crisis as a reason of financial harm that the exchequer is toiling to address. Cabinet members have followed suit, although they cautiously attribute the blame to "a bad Brexit deal" or "the exit process", never just "leaving".
Geopolitical Environment and Future Possibilities
The issue of the nation's long-term partnership with the EU can't be reduced to technical adjustments and customs systems when the entire international system is in significant transformation. Given everything that has transpired since 2016, it feels appropriate still to be raising the big question: were the nation's concerns promoted by leaving the European Union?
Summary
These represent sobering, challenging facts about the UK's predicament in turbulent world affairs. It is expected that Starmer and Reeves recoil from the challenge. It would take them way out of their depth, into forces that they will not resist. So instead they persist nervously moving along the water's edge, hoping that maybe soon the circumstances will change.