The Chancellor Grapples with Her Major Challenge: The Brexit Conundrum
Rachel Reeves has tackled this week's financial plan similar to a hesitant bather inching into icy water, striving to lessen the hardship through step-by-step entry.
Early Steps and Revenue Pledges
Reeves began tackling the challenge of limited funds at the close of summer. At first, she would not to support previous insistence that tax rises in the prior year's budget would be the last ones.
Subsequently, earlier this month, she took a bolder step into the cold waters. Her address committed to "implement needed measures" to support state services and maintain loan interest low.
Election Promise and Political Retreat
In just 10 days, the finance ministry had pulled back the hint. The campaign pledge was upheld in the end. As any cold-water swimmer realizes, this cancelled plunge and shivering pullback is the most painful of all methods. No strategy extends the suffering like hesitation.
It's difficult to be resolute when selecting between degrees of personally caused harm.
Optimism as Strategy
Optimism has not been a successful tactic for the administration. At the core of the Labour leader's political platform was the futile hope of in some way meeting citizens' demand for better public services without overturning large sums of Tory reductions in taxation.
Communication Shortcoming
Never has both Starmer or Reeves successfully expressed a sense of shared mission to validate all this pain. In part that is a issue of charisma. Starmer and Reeves are strikingly comparable in their ineffective messaging, wooden and reticent in a way that pushes the public away instead of attracting them closer.
EU Exit Settlement and Financial Truth
In the same way that public demand to invest in government services has forced the finance ministry to acknowledge that levies must increase, the financial necessity of improving growth makes it increasingly difficult to overlook the expense of detachment from the EU market.
European Relationship and Discussions
The government spent a year experimenting in the early stages of closer ties with the European Union: plans to end customs checks on farm products; a youth mobility scheme. Aspiration went a more substantial on power generation, military and protection collaboration, but no major deals has so far been agreed.
Diplomatic Reality and International Status
Without clear direction and drive from Downing Street, talks are bogged down. The European Commission says trading benefits are obtained with financial input to the EU budget. Government representatives know that's the arrangement. That doesn't cause them keen for a visible argument and Nigel Farage shouting betrayal over the eventual amount ends up being agreed.
Financial Damage and Government Language
Economic reality has provoked some shift in Labour's rhetoric on the EU relationship. The chancellor has started identifying Brexit alongside the coronavirus crisis as a cause of economic damage that the Treasury is working hard to repair. Cabinet members have done the same, although they carefully ascribe the responsibility to "a bad Brexit deal" or "the way we left", never just "leaving".
International Environment and Long-term Prospects
The problem of the UK's ongoing association with the EU can't be simplified to administrative modifications and customs systems when the entire international system is in constant change. Considering everything that has occurred since the Brexit vote, it feels appropriate still to be posing the big question: were the nation's concerns advanced by exiting the EU?
Summary
These represent harsh, difficult facts about the nation's predicament in choppy world affairs. It is understandable that Starmer and Reeves shy away from the challenge. It would take them way out of their depth, into forces that they cannot swim against. So instead they continue nervously pacing the shore, wishing that possibly in the near future the tide will turn.