{"id":236373,"date":"2025-07-04T03:18:12","date_gmt":"2025-07-04T03:18:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/236373\/"},"modified":"2025-07-04T03:18:12","modified_gmt":"2025-07-04T03:18:12","slug":"uks-rachel-reeves-faces-pain-wherever-she-turns-politico","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/236373\/","title":{"rendered":"UK\u2019s Rachel Reeves faces pain wherever she turns \u2013 POLITICO"},"content":{"rendered":"

\u201cThe problem that Rachel Reeves really sharply faces \u2026 is that you have pinned everything on the fiscal rules,\u201d he argued. \u201cIf you say we are now going to change them, that will provoke a reaction of the kind we have just seen through bond markets.\u201d<\/p>\n

Don\u2019t surprise the markets \u2014\u00a0Rupert Harrison, former adviser to George Osborne<\/strong><\/p>\n

Rupert Harrison \u2014 a key Tory ex-aide who is now a senior adviser at investment management company PIMCO \u2014 agreed markets would be spooked by any watering down of Reeves\u2019 fiscal rules, with investors already factoring in tax rises.\u00a0<\/p>\n

\u201cThe gilt market has already started to react negatively to news about the welfare bill, with yields rising relative to other countries, but the scale of that reaction has been limited by a widespread assumption amongst investors that the government\u2019s response will be to raise taxes in the autumn,\u201d he said.<\/p>\n

\u201cAny suggestions that the government might look again at watering down its fiscal rules would start to risk a more negative market reaction given the U.K.\u2019s well-known fiscal vulnerabilities,\u201d Harrison added. \u201cMarkets now assume that cuts to welfare spending and departmental budgets are effectively off the table \u2014 if they start to sense that the political will to raise taxes is also lacking then concerns about fiscal sustainability will grow.\u201d<\/p>\n

\"\"Gavin Barwell, former chief of staff to Theresa May. | Vickie Flores\/EFE via EPA<\/p>\n

Give MPs a reality check \u2014\u00a0Gavin Barwell, former chief of staff to Theresa May<\/strong><\/p>\n

Gavin Barwell, in the trenches as the Theresa May government faced huge disloyalty in the ranks over Brexit, thought Reeves needed to be better at forcing members of parliament to say what hard choices they would actually make.<\/p>\n

He drew parallels between the current government\u2019s party management woes and the dilemma facing his former boss. \u201cDifferent people kept putting to parliament different propositions of how to solve the Brexit question, and parliament just kept saying no, but it never had to say what its answer was,\u201d he recalled.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThe problem that Rachel Reeves really sharply faces \u2026 is that you have pinned everything on the fiscal…\n","protected":false},"author":2,"featured_media":236374,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[331,3420,748,1194,2814,32,393,474,92306,72203,4884,1195,1196,478,1197,714,92307,807,2441,1144,391,5111,617,46,70473,619,712,3695,2824,1200,11655,16,15,9892,1764,12340],"class_list":{"0":"post-236373","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"category-united-kingdom","9":"tag-banks","10":"tag-bonds","11":"tag-britain","12":"tag-budget","13":"tag-data","14":"tag-donald-trump","15":"tag-england","16":"tag-finance","17":"tag-gavin-barwell","18":"tag-george-osborne","19":"tag-great-britain","20":"tag-growth","21":"tag-insurance","22":"tag-interest-rates","23":"tag-investment","24":"tag-joe-biden","25":"tag-john-mcdonnell","26":"tag-keir-starmer","27":"tag-markets","28":"tag-northern-ireland","29":"tag-opinion","30":"tag-parliament","31":"tag-pensions","32":"tag-policy","33":"tag-quantitative-easing","34":"tag-rachel-reeves","35":"tag-scotland","36":"tag-sustainability","37":"tag-tanks","38":"tag-tax","39":"tag-theresa-may","40":"tag-uk","41":"tag-united-kingdom","42":"tag-vat","43":"tag-wales","44":"tag-welfare"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114792805584853267","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/236373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=236373"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/236373\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/236374"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=236373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=236373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=236373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}