ALEX BRUMMER: Reeves hasn't 'fixed the economic foundations' - she's presiding over a looming disaster that could be as bad as Greece
As the Chancellor lives it up with her fellow G7 finance ministers at the £350-a-night Rimrock Resort Hotel in Canada 's Rocky Mountains, her credibility at home is draining away.
Rachel Reeves 's claims to have fixed the public finances are sounding increasingly delusional as the economic outlook becomes more grim with every passing day.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
2 hours ago
- The Sun
‘Fuming' Angela Rayner locked in ‘tense' row with Rachel Reeves over crucial spending review
ANGELA Rayner and Rachel Reeves are locked in a row over this week's spending review — which fellow ministers have dubbed, 'The War of the Roses'. The Deputy PM was last night still refusing to sign up to her housing department's budget. 8 8 8 Ms Rayner has been demanding billions more for home building. Talks are going down to the wire, leaving Chancellor Ms Reeves with little time to get her numbers to add up before she presents her spending plans to Parliament on Wednesday. If Ms Rayner — dubbed 'Red Rayner' for her leftie views — refuses to agree to her budget then No11 will have to take the highly unusual step of imposing it on her. One senior minister told The Sun on Sunday: 'Things are tense. The two most powerful women in Cabinet can't agree. 'It's like War of the Roses. Angela represents a Lancashire seat and Rachel's is in Yorkshire.' 8 8 The War of the Roses was a series of battles for the throne waged between the House of York and House of Lancaster. The Yorkist symbol was a white rose and Lancaster's was a red rose. The Labour Party's emblem is also famously a red rose. 8 A senior government insider said: 'Angela is definitely not happy. She could blow up at any moment.' Another said: 'Angie used to work for a trade union and has taken those hardline negotiation tactics with her into the Treasury talks.' The Government has vowed to build 1.5 million new homes in England by 2029, but Ms Rayner fears she will miss the target without more cash. Nailbiting negotiations between the pair were still ongoing last night. 8 8 Many departments face having to make deep cuts because of a tight spending squeeze. But Ms Reeves will tell MPs on Wednesday she is spending shedloads of cash on infrastructure investment to turbocharge the economy. This will include £86 billion on Britain's fastest growing sectors, including tech, sciences and defence. Writing in today's Sun on Sunday, Cabinet minister Peter Kyle said 'tough decisions' have been made to knock the economy into shape.
The Independent
4 hours ago
- The Independent
Unions pile pressure on Reeves to avoid cuts and impose wealth taxes
Labour 's biggest financial backers are piling pressure on Rachel Reeves to avoid making cuts at next week's spending review and instead pursue wealth taxes to fund Britain's public services. Polling commissioned by the Trades Union Congress (TUC) reveals a majority the public (54 per cent) back taxes on big corporations and the most wealthy individuals as an alternative means of raising revenue. Just 28 per cent oppose the move. TUC general secretary Paul Nowak urged the government to 'stay on track' and build on the 'positive start it made at last year's budget by providing sustained funding for our public services and infrastructure' - warning that people are 'fed up with a system where those with the broadest shoulders don't pull their weight.' It comes after deputy prime minister Angela Rayner pressed Ms Reeves to consider eight wealth taxes rather than try to impose cuts on departments. The civil war within the government over next Wednesday's spending review has seen hold outs from Ms Rayner's Ministry of Housing, Communities and Local Government as well as Yvette Cooper's Home Office. The chancellor is expected to unveil a swathe of spending cuts as she attempts to walk the tightrope between delivering on the party's election promises while sticking within the bounds of her self-imposed fiscal rules. The TUC has also joined criticism of the Office of Budget Responsibility (OBR) over question marks on whether its flawed predictions are having a negative impact on spending plans. The OBR produces forecasts twice a year alongside the Autumn budget and spring statement, which are used by the government to make fiscal policy decisions. But Mr Nowak said it is now 'time to review the role of the OBR and its fiscal assumptions to give the UK greater flexibility to invest in our future', with the TUC arguing that short term changes in forecasts should not be driving long term government decision making. Mr Nowak said next week's spending review 'can be the next key step in the government's plan to rebuild Britain and deliver industrial renewal' as 'communities are still crying out for meaningful change after more than a decade of Tory austerity and neglect'. 'The global outlook is challenging, but leaving our decimated public services without sufficient investment would risk both future growth and public trust', he added. 'The message from voters is clear. They want the government to protect and rebuild our public services', he said. 'If that means asking the wealthiest to pay more, the public are behind it. People are fed up with a system where those with the broadest shoulders don't pull their weight.' The warning from the TUC - which represents 5.3 million people in 47 member unions - will pile pressure on Labour, a party which has historically been heavily dependent on the funding it receives from trade unions. In 2024, Labour declared £2.4m from union backers - significantly less than the £5m it declared from unions in 2019 after Unite refused to endorse the party's manifesto. The poll of more than 2,000 adults, conducted by Hold Sway, for the TUC shows there is widespread frustration at the current amount of tax paid by the wealthiest in Britain. Nearly 6 in 10 (59 per cent) think the wealthiest do not pay their fair share – including 74 per cent of Conservative to Labour switchers and 72 per cent of those strongly considering switching from Labour to Reform. More than half (56 per cent) think big businesses do not pay their fair share of tax, while just 31 per cent think they do. The polling showed that two thirds of (67 per cent) voters back an annual wealth tax for estates above £10m, including 88 per cent of Tory to Labour switchers; and 81 per cent of Labour voters now strongly considering Reform. Meanwhile, more than six in ten (63 per cent) back a windfall tax on banks – including 85 per cent of Tory to Labour switchers, and 78 per cent of those Labour voters now strongly considering Reform. Some 50 per cent back raising capital gains tax, including 75 per cent of Tory to Labour switchers, and 67 per cent of those Labour voters now strongly considering Reform. Just 26 per cent oppose a capital gains tax hike. The Hold Sway poll surveyed 2000 adults in Great Britain online between 30 May and 2 June.
Daily Mail
5 hours ago
- Daily Mail
EXCLUSIVE 'Rachel Reeves looks exhausted. She can't deliver': Labour ministers drip poison to DAN HODGES on why the Chancellor is doomed... and tell the woeful reason she thinks it's all gone wrong
It was the expression that spoke for a nation. As Rachel Reeves delivered her speech on new transport investment, workers at the Mellor Bus factory in Rochdale appeared less than impressed. And when she embarked on a lecture about the Treasury Green Book, one increasingly desperate employee looked as if he was contemplating making a break for it and hurling himself into the River Roch. Asked at the end of her address what they thought of Reeves's announcement, one of his colleagues simply responded: 'My legs ache.'
