Browsing: Rachel Reeves

“In the standard textbook model that Reeves would have learned at Oxford and the London School of Economics in the late 1990s, business investment is a reward for governments that behave nicely. Investors want low tax rates, flexible markets and, above all, stability. Any hint of an increase in borrowing and they will spook, worrying that government debt will spiral out of control. In this kind of model, even austerity can be expansionary, as it demonstrates to the business community that the fiscal authorities are really committed, even at the expense of electoral pain.”

“While Reeves may have been shocked by the detail of the public finances, and her outrage at Tory mismanagement wholly justified, her performance was largely planned in advance. The broad fiscal picture was known before the election. This was all part of a political strategy to temper public expectations, affix blame to the Conservatives and instil patience in her own MPs. It is also likely that the tax rises she implied were unnecessary during the election, but will announce in October, have long been known to her.”

“No More Austerity!” – Monday’s newspaper front pages are heavily dominated by the chancellor’s party conference speech later today. Rachel Reeves will lay out the plans to get Britain’s economy back on track with a speech that is set to offer a positive version of the future after dire warnings about the economy since they came to power.

The Labour Party conference is taking place in Liverpool and marks the first annual conference in government for 15 years.

Beyond politics, there is continued coverage of the allegations about former Harrods owner Mohammed Al-Fayed.

Man City’s thrilling 2-2 draw against Arsenal on Sunday makes several of the front pages – the story dominates the back pages and other sports papers.