The first full week of January rarely wins anyone’s award for their favourite time of the year.
However, for Rachel Reeves, this was the worst week of her career so far.
Let us be clear, Reeves is no lettuce. Earlier this week our vegetative ex-prime minister Liz Truss sent Keir Starmer a “cease and desist” legal letter, ordering him to stop saying she crashed the economy. She warns he faces legal action.
Perhaps, next time, Truss could instead write to millions of people around the country, apologising that they have to pay higher mortgages and prices.
Back to Reeves. She has staked her reputation on igniting growth. The markets remain sceptical – and this week’s investor revolt shows the scale of the challenge she faces.
Yes, her inheritance was lousy, and the global bond sell-off has affected other governments too. But October’s Budget was too tight – leaving her little headroom – and alienated business, while her growth plan lacks ambition, detail and pace.
The Chancellor’s current strategy is plainly not adequate for the grim circumstances she has been handed. When she returns from China, Reeves faces a critical few weeks as she tries to win back investor confidence. She may also need to choose between cuts to public services and welfare, or a tax hike.
Being chancellor is rarely a popularity contest, but Reeves and her team at the Treasury did not expect to find themselves mired in such trouble.
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Liz Truss needs to take her own advice, and cease and desist