The Chancellor Grapples with A Most Significant Problem: The EU Exit Bind
Rachel Reeves has approached this week's spending review comparable to a unwilling swimmer creeping into icy water, striving to ease the unpleasantness through incremental immersion.
Initial Steps and Revenue Commitments
The chancellor began addressing the problem of inadequate income at the end of summer. To begin with, she declined to uphold previous statements that revenue hikes in the prior year's budget would be the final ones.
Later, recently, she took a bolder move into the cold sea. Her remarks vowed to "implement needed measures" to fund state services and keep borrowing costs down.
Election Promise and Government Backtrack
In just 10 days, the finance ministry had withdrawn the implication. The manifesto commitment was upheld in the end. Like every freezing-water dipper knows, this aborted immersion and shivering withdrawal is the worst of all approaches. Nothing extends the pain like indecision.
It is challenging to be decisive when selecting between levels of internally generated injury.
Hope as Plan
Optimism has not been a great approach for this government. At the core of the Labour leader's election bid was the unrealistic hope of somehow satisfying citizens' desire for better public services without reversing significant amounts of Tory tax cuts.
Messaging Weakness
Not once has either Starmer or the chancellor effectively expressed a sense of shared mission to explain all this hardship. To some extent that is a challenge of personality appeal. Starmer and Reeves are remarkably comparable in their communicative deficiency, stilted and unforthcoming in a way that drives the public away instead of pulling them closer.
EU Exit Agreement and Economic Truth
Similarly to public demand to invest in government services has pushed the exchequer to acknowledge that taxes must increase, the economic imperative of increasing prosperity makes it increasingly difficult to ignore the cost of separation from the European single market.
EU Relations and Talks
The government spent a period splashing in the early stages of closer ties with the European Union: proposals to remove customs checks on agricultural goods; a student movement initiative. Vision went a bit deeper on power generation, armed forces partnership, but no major deals has to date been finalized.
Political Reality and Global Status
In the absence specific instruction and drive from Downing Street, negotiations are stuck. Brussels authorities says single-market privileges are unlocked with payments to the continental treasury. UK ministers understand that's the arrangement. That doesn't cause them eager for a open dispute and campaigners shouting disloyalty over the eventual amount ends up being settled.
Economic Damage and Political Language
Financial circumstances has triggered some shift in the government's language on the EU relationship. The chancellor has commenced naming EU withdrawal alongside the health emergency as a factor of economic damage that the exchequer is toiling to address. Government colleagues have followed suit, although they deliberately attribute the blame to "a bad Brexit deal" or "the exit process", never just "Brexit".
International Situation and Long-term Possibilities
The challenge of the UK's ongoing association with the European Union can't be simplified to administrative modifications and customs systems when the entire international system is in significant transformation. Given everything that has occurred since the referendum year, it feels legitimate still to be posing the fundamental issue: were Britain's interests advanced by leaving the European Union?
Final Analysis
These are harsh, difficult facts about the nation's situation in uncertain global circumstances. It is not surprising that both leaders flinch from the task. It would take them way out of their depth, into trends that they will not swim against. So instead they carry on anxiously pacing the water's edge, praying that maybe soon the tide will change.