Rachel Reeves Grapples with Her Most Significant Problem: This Brexit Bind
The chancellor has tackled the imminent spending review like a unwilling bather creeping into freezing water, attempting to mitigate the hardship through gradual exposure.
Early Steps and Revenue Pledges
She began addressing the issue of insufficient income near the end of summer. To begin with, she would not to stand by previous assertions that increases in taxation in the previous year's financial statement would be the last ones.
Later, earlier this month, she took a bolder step into the freezing sea. A speech vowed to "implement needed measures" to support government services and control borrowing costs down.
Manifesto Commitment and Political Withdrawal
In just 10 days, the exchequer had retracted the implication. The manifesto commitment remained intact ultimately. Like every icy-water swimmer realizes, this aborted plunge and trembling withdrawal is the most painful of all techniques. No tactic draws out the discomfort like indecision.
It can be difficult to be decisive when choosing between levels of personally caused injury.
Optimism as Approach
Expectation has not been a great approach for the administration. At the core of the Labour leader's election bid was the futile hope of by some means fulfilling voters' demand for enhanced public services without reversing large sums of Tory reductions in taxation.
Communication Deficiency
At no point has both the prime minister or Reeves effectively expressed a impression of national purpose to explain all this pain. Partly that is a problem of personality appeal. Starmer and Reeves are uncannily similar in their poor communication skills, awkward and reserved in a way that pushes audiences off instead of pulling them closer.
Brexit Agreement and Economic Reality
Similarly to electoral expectations to support state services has pushed the exchequer to admit that levies must rise, the financial necessity of increasing economic expansion makes it ever harder to overlook the expense of detachment from the European single market.
European Relations and Discussions
Officials spent a year dabbling in the shallow end of improved relations with the European Union: proposals to eliminate customs checks on food items; a young people's exchange program. Aspiration went a bit deeper on energy, armed forces partnership, but no significant agreements has so far been signed.
Diplomatic Situation and Global Status
In the absence clear direction and drive from No 10, talks are bogged down. EU officials says trading benefits are unlocked with contributions to the continental treasury. UK ministers understand that's the arrangement. That doesn't lead them keen for a public row and campaigners shouting disloyalty over the eventual amount ends up being agreed.
Economic Damage and Political Language
Financial circumstances has provoked some shift in the administration's tone on the EU relationship. Reeves has begun naming leaving Europe alongside the Covid pandemic as a factor of economic damage that the Treasury is working hard to fix. Government colleagues have emulated this, although they carefully ascribe the blame to "unfavorable agreement" or "the manner of departure", never just "leaving".
Geopolitical Environment and Future Possibilities
The challenge of Britain's long-term partnership with the EU can't be simplified to administrative modifications and import controls when the whole geopolitical order is in tumultuous flux. In light of everything that has happened since the referendum year, it feels appropriate still to be asking the core matter: were Britain's interests promoted by exiting the EU?
Conclusion
These are sobering, challenging facts about Britain's position in choppy global circumstances. It is understandable that both leaders flinch from the challenge. It would take them way out of their depth, into trends that they will not oppose. So instead they continue apprehensively moving along the coastline, wishing that possibly in the near future the circumstances will turn.