What Rachel Reeves can learn from Donald Trump
Photo byNext week, Rachel Reeves will publish the Government's Spending Review, outlining the financial settlement for the coming three years. As she makes her final decisions (they always go to the wire) she might consider lessons from an unlikely source: the US President. In recent months, Donald Trump has taken to trashing areas of deep US strength that were taken for granted so completely that they were invisible to most. Trump has done Reeves a favour, by paving paradise and putting up a parking lot. His actions are a reminder of the importance of investing in the unseen infrastructures that enable prosperity.
The British Academy has just published a series of papers exploring what might pull the UK out of its long period of low productivity. The UK has powerful legal, financial, cultural and scientific institutions, but we're not good at organising the economy around our greatest strengths. We have a large population of skilled workers, for example, but they are unevenly spread and mismatched across regions. We do not make the most of our institutional, human and physical capital.
Reeves has an opportunity to invest in these strengths and to make the UK more prosperous over the long term. In the US, the government is currently experimenting with the opposite approach. Trump has taken an axe to America's historic strength in research by attacking universities including Harvard, and cutting or freezing research funding. R&D is one of the drivers of long-term prosperity, and the US will be poorer as a result in the medium term.
By many measures the UK already punches above its weight when it comes to R&D, particularly in universities. Reeves needs to continue investing in this long-term source of growth, and also find a model for the universities where much of this research is conducted to be financially stable. The Government has recently focused on heavy investment in advanced or 'frontier' technology but a significant share of innovation in the UK's services-dominated economy is not especially high-tech. We innovate well through the humanities, social sciences and the arts, in processes and services, as well as we do in cutting-edge technology.
Trump has also reminded us of the dangers of unpredictability. A country whose word cannot be relied upon will suffer economically – even if it is currently the dominant power. The UK faces rather different challenges to the US on the global stage, in that we are not large enough to act unilaterally or bilaterally, nor are we still a member of a major economic bloc. But our deep roots in multilateralism mean we have an opportunity to become the world's most dependable broker. We have an historic role in shaping the major international organisations and we have substantial knowledge of global institutions and international legal norms and practices. In turbulent times this institutional infrastructure is something in which we should invest, with a strategic narrative that the UK economy remains open to the world.
Our relatively stable political landscape, strong institutions and low levels of corruption are not just part of the furniture – they are a source of comparative advantage in an increasingly turbulent world. The openness of our economy is an opportunity to attract and develop human capital. We have a valuable infrastructure of knowledge and finance that is well equipped to support and commercialise innovation.
The UK government has struggled in its first year to find a positive narrative, to move beyond dealing with a difficult economic inheritance. The public knows we have an economy that has suffered long-term stagnation and that we face mounting geopolitical uncertainty. The Spending Review should be couched in a narrative of investing in the UK's comparative strengths and its deep assets, in the infrastructure that is needed to help secure longer-term growth and resilience. If she can do this, the Chancellor might be even able to say that despite the tight economic circumstances, it is the Biggest, the Best, and the most Beautiful spending review ever.
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[See also: Rachel Reeves should fear the bond market vigilantes]
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Glasgow Times
10 minutes ago
- Glasgow Times
Protests intensify in Los Angeles after Trump deploys National Guard troops
They blocked off a major road and set self-driving cars on fire as law enforcement used tear gas, rubber bullets and flash bangs to control the crowd. Many protesters dispersed as evening fell and police declared an unlawful assembly, a precursor to officers moving in and making arrests of people who do not leave. Some of those remaining threw objects at police from behind a makeshift barrier that spanned the width of a street and others hurled chunks of concrete, rocks, electric scooters and fireworks at California Highway Patrol officers and their vehicles parked on the closed southbound 101 freeway. Officers ran under an overpass to take cover. People take cover as a firework explodes during a protest near the Metropolitan Detention Centre in Los Angeles (Ethan Swope/AP) Sunday's protests in Los Angeles, a sprawling city of four million people, were centred in downtown several blocks. It was the third and most intense day of demonstrations against Mr Trump's immigration crackdown in the region, as the arrival of around 300 Guard troops spurred anger and fear among many residents. The Guard was deployed specifically to protect federal buildings, including the detention centre where protesters concentrated. Los Angeles Police Chief Jim McDonnell said officers were 'overwhelmed' by the remaining protesters. He said they included regular agitators who appear at demonstrations to cause trouble. Several dozen people were arrested throughout the weekend of protest. One was detained on Sunday for throwing a Molotov cocktail at police, and another for ramming a motorcycle into a line of officers. Let's get this straight: 1) Local law enforcement didn't need help. 2) Trump sent troops anyway — to manufacture chaos and violence. 3) Trump succeeded. 4) Now things are destabilized and we need to send in more law enforcement just to clean up Trump's mess. — Gavin Newsom (@GavinNewsom) June 9, 2025 Mr Trump responded to Mr McDonnell on Truth Social, telling him to arrest protesters in face masks. 'Looking really bad in L.A. BRING IN THE TROOPS!!!' he wrote. Starting in the morning, the troops stood shoulder to shoulder, carrying long guns and riot shields as protesters shouted 'shame' and 'go home'. After some closely approached the guard members, another set of uniformed officers advanced on the group, shooting smoke-filled canisters into the street. Minutes later, the Los Angeles Police Department fired rounds of crowd-control munitions to disperse the protesters, who they said were assembled unlawfully. Much of the group then moved to block traffic on the 101 freeway until state patrol officers cleared them from the roadway by late afternoon. Nearby, at least four self-driving Waymo cars were set on fire, sending large plumes of black smoke into the sky and exploding intermittently as the electric vehicles burned. By evening, police had issued an unlawful assembly order shutting down several blocks of downtown Los Angeles. A protester stands on a burning Waymo taxi in Los Angeles (Eric Thayer/AP) Flash bangs echoed out every few seconds into the evening. Democratic Governor Gavin Newsom requested that Mr Trump remove the guard members in a letter on Sunday afternoon, calling their deployment a 'serious breach of state sovereignty'. He was in Los Angeles meeting local law enforcement and officials. The deployment appeared to be the first time in decades that a state's national guard was activated without a request from its governor, a significant escalation against those who have sought to hinder the administration's mass deportation efforts. Mr Newsom and Los Angeles Mayor Karen Bass blamed the increasingly aggressive protests on Mr Trump's decision to deploy the Guard, calling it a move designed to inflame tensions. They have both urged protesters to remain peaceful. 'What we're seeing in Los Angeles is chaos that is provoked by the administration,' she said in an afternoon press conference. 'This is about another agenda, this isn't about public safety.' But Mr McDonnell, the LAPD chief, said the protests were following a similar pattern for episodes of civil unrest, with things ramping up in the second and third days. He pushed back against claims by the Trump administration that the LAPD had failed to help federal authorities when protests broke out on Friday after a series of immigration raids. His department responded as quickly as it could, and had not been notified in advance of the raids and therefore was not pre-positioned for protests, he said. Mr Newsom, meanwhile, has repeatedly said that California authorities had the situation under control. A California Highway Patrol officer pulls an electric scooter off a vehicle as protesters throw objects at the police vehicles near the Metropolitan Detention Centre in Los Angeles (Ethan Swope/AP) He mocked Mr Trump for posting a congratulatory message to the Guard on social media before troops had even arrived in Los Angeles, and said on MSNBC that Mr Trump never floated deploying the Guard during a Friday phone call. He called Mr Trump a 'stone cold liar'. The admonishments did not deter the administration. 'It's a bald-faced lie for Newsom to claim there was no problem in Los Angeles before President Trump got involved,' White House spokesperson Abigail Jackson said in a statement. The arrival of the National Guard followed two days of protests that began Friday in Los Angeles before spreading on Saturday to Paramount, a heavily Latino city south of the city, and neighbouring Compton. Federal agents arrested immigrants in LA's fashion district, in a Home Depot parking lot and at several other locations on Friday. The next day, they were staging at a Department of Homeland Security office near another Home Depot in Paramount, which drew out protesters who suspected another raid. Federal authorities later said there was no enforcement activity at that Home Depot. The weeklong tally of immigrant arrests in the LA area climbed above 100, federal authorities said. Many more were arrested while protesting, including a prominent union leader who was accused of impeding law enforcement. The protests did not reach the size of past demonstrations that brought the National Guard to Los Angeles, including the Watts and Rodney King riots, and the 2020 protests against police violence, in which Mr Newsom requested the assistance of federal troops. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Centre for Justice. In a directive on Saturday, Mr Trump invoked a legal provision allowing him to deploy federal service members when there is 'a rebellion or danger of a rebellion against the authority of the Government of the United States'. He said he had authorised the deployment of 2,000 members of the National Guard. Mr Trump told reporters as he prepared to board Air Force One in Morristown, New Jersey, Sunday that there were 'violent people' in Los Angeles 'and they're not going to get away with it'. Asked if he planned to send US troops to Los Angeles, Mr Trump replied: 'We're going to have troops everywhere. We're not going to let this happen to our country.' He did not elaborate. About 500 marines stationed at Twentynine Palms, about 125 miles (200 kilometres) east of Los Angeles were in a 'prepared to deploy status' on Sunday afternoon, according to the US Northern Command.
The National
17 minutes ago
- The National
Riots in LA as Donald Trump and Gavin Newsom call each other 'liars'
They blocked off a major road and set self-driving cars on fire as law enforcement used tear gas, rubber bullets and flash bangs to control the crowd. Many protesters dispersed as evening fell and police declared an unlawful assembly, a precursor to officers moving in and making arrests of people who do not leave. Some of those remaining threw objects at police from behind a makeshift barrier that spanned the width of a street and others hurled chunks of concrete, rocks, electric scooters and fireworks at California Highway Patrol officers and their vehicles parked on the closed southbound 101 freeway. Officers ran under an overpass to take cover. (Image: Kevin Lamarque, REUTERS) Sunday's protests in Los Angeles, a sprawling city of four million people, were centred in downtown several blocks. It was the third and most intense day of demonstrations against Trump's immigration crackdown in the region, as the arrival of around 300 Guard troops spurred anger and fear among many residents. The Guard was deployed specifically to protect federal buildings, including the detention centre where protesters concentrated. Los Angeles police chief Jim McDonnell said officers were 'overwhelmed' by the remaining protesters. He said they included regular agitators who appear at demonstrations to cause trouble. Several dozen people were arrested throughout the weekend of protest. One was detained on Sunday for throwing a Molotov cocktail at police, and another for ramming a motorcycle into a line of officers. Trump responded to McDonnell on Truth Social, telling him to arrest protesters in face masks. 'Looking really bad in L.A. BRING IN THE TROOPS!!!' he wrote. (Image: AP Photo/Eric Thayer) Starting in the morning, the troops stood shoulder to shoulder, carrying long guns and riot shields as protesters shouted 'shame' and 'go home'. After some closely approached the guard members, another set of uniformed officers advanced on the group, shooting smoke-filled canisters into the street. Minutes later, the Los Angeles Police Department fired rounds of crowd-control munitions to disperse the protesters, who they said were assembled unlawfully. Much of the group then moved to block traffic on the 101 freeway until state patrol officers cleared them from the roadway by late afternoon. Nearby, at least four self-driving Waymo cars were set on fire, sending large plumes of black smoke into the sky and exploding intermittently as the electric vehicles burned. By evening, police had issued an unlawful assembly order shutting down several blocks of downtown Los Angeles. Flash bangs echoed out every few seconds into the evening. Democratic Governor Gavin Newsom requested that Trump remove the guard members in a letter on Sunday afternoon, calling their deployment a 'serious breach of state sovereignty'. He was in Los Angeles meeting local law enforcement and officials. READ MORE: Israeli army boards Freedom Flotilla ship trying to reach Gaza as 'connection lost' The deployment appeared to be the first time in decades that a state's national guard was activated without a request from its governor, a significant escalation against those who have sought to hinder the administration's mass deportation efforts. Newsom and Los Angeles mayor Karen Bass blamed the increasingly aggressive protests on Trump's decision to deploy the Guard, calling it a move designed to inflame tensions. They have both urged protesters to remain peaceful. 'What we're seeing in Los Angeles is chaos that is provoked by the administration,' she said in an afternoon press conference. 'This is about another agenda, this isn't about public safety.' But McDonnell, the LAPD chief, said the protests were following a similar pattern for episodes of civil unrest, with things ramping up in the second and third days. He pushed back against claims by the Trump administration that the LAPD had failed to help federal authorities when protests broke out on Friday after a series of immigration raids. His department responded as quickly as it could, and had not been notified in advance of the raids and therefore was not pre-positioned for protests, he said. Newsom, meanwhile, has repeatedly said that California authorities had the situation under control. California governor Gavin Newsom (Image: Mike Blake, Reuters) He mocked Trump for posting a congratulatory message to the Guard on social media before troops had even arrived in Los Angeles, and said on MSNBC that Mr Trump never floated deploying the Guard during a Friday phone call. He called Mr Trump a 'stone cold liar'. The admonishments did not deter the administration. 'It's a bald-faced lie for Newsom to claim there was no problem in Los Angeles before President Trump got involved,' White House spokesperson Abigail Jackson said in a statement. The arrival of the National Guard followed two days of protests that began Friday in Los Angeles before spreading on Saturday to Paramount, a heavily Latino city south of the city, and neighbouring Compton. Federal agents arrested immigrants in LA's fashion district, in a Home Depot parking lot and at several other locations on Friday. The next day, they were staging at a Department of Homeland Security office near another Home Depot in Paramount, which drew out protesters who suspected another raid. Federal authorities later said there was no enforcement activity at that Home Depot. The weeklong tally of immigrant arrests in the LA area climbed above 100, federal authorities said. Many more were arrested while protesting, including a prominent union leader who was accused of impeding law enforcement. The protests did not reach the size of past demonstrations that brought the National Guard to Los Angeles, including the Watts and Rodney King riots, and the 2020 protests against police violence, in which Newsom requested the assistance of federal troops. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Centre for Justice. In a directive on Saturday, Trump invoked a legal provision allowing him to deploy federal service members when there is 'a rebellion or danger of a rebellion against the authority of the Government of the United States'. He said he had authorised the deployment of 2000 members of the National Guard. Trump told reporters as he prepared to board Air Force One in Morristown, New Jersey, Sunday that there were 'violent people' in Los Angeles 'and they're not going to get away with it'. Asked if he planned to send US troops to Los Angeles, Trump replied: 'We're going to have troops everywhere. We're not going to let this happen to our country.' He did not elaborate. About 500 marines stationed at Twentynine Palms, about 125 miles (200 kilometres) east of Los Angeles were in a 'prepared to deploy status' on Sunday afternoon, according to the US Northern Command.
STV News
20 minutes ago
- STV News
SNP calls on Labour to match Scottish Government action on poverty
Almost two million families would be lifted out of poverty if Labour matched Scottish Government action on the issue, the SNP has claimed. Ahead of the UK spending review, the SNP asked the House of Commons Library to produce an independent analysis on the number of British children in poverty and the impact that replicating Scottish Government policies across the UK would have. The research showed 1.83 million families would be lifted out of poverty if policies were matched, including abolishing the two-child benefit cap, scrapping the bedroom tax and raising the child element of Universal Credit to match the Scottish child payment, according to the SNP. Statistics showed a third of British children were anticipated to be living in poverty by 2029-30 unless action was taken. Sir Keir Starmer was urged to act on the figures ahead of the UK spending review on Wednesday amid warnings the number of British children living in poverty is expected to rise to a record 4.6 million by 2029-30. Over the past decade, the number of children living in poverty has risen from 3.7 million (27%) in 2013/14 to 4.5 million (31%) in 2023/24, the SNP said. The SNP said Scotland is the only part of the UK where child poverty is falling, due to 'bold' policies such as the Scottish child payment of £27.15 per child, per week, paid in addition to other benefits. Replicating it UK-wide, by raising the child element of Universal Credit by the same amount, would lift 732,000 families out of poverty, including a further 38,000 families in Scotland, analysis showed. The SNP said it has also mitigated the bedroom tax and is in the process of ending the two-child benefit cap in Scotland. It said replicating the policies would lift a further 609,000 British families out of poverty, with the combined impact of introducing all three policies lifting 1.83 million families out of poverty, including a further 75,000 in Scotland. The UK Government delayed its child poverty taskforce review to the autumn and last year Labour MPs voted against abolishing the two-child benefit cap, in a motion tabled by the SNP. The Chancellor has previously rejected proposals to abolish the bedroom tax. The SNP said the UK Government's own impact analysis showed planned cuts to disability benefits will push 250,000 more people into poverty, including 50,000 children, with families losing out on £4,500 a year on average as a result of the cuts, branding it 'shameful'. SNP work and pensions spokeswoman Kirsty Blackman MP said: 'The evidence shows Keir Starmer's Labour Government is keeping almost two million families in poverty by failing to match SNP action across the UK. 'It's shameful that UK child poverty is rising to record levels under the Labour Government, which has pushed thousands more children into deprivation by imposing punitive welfare cuts. 'It's vital that the Prime Minister finally listens to families struggling with the soaring cost of living – and takes the long-overdue action needed to end child poverty at the UK spending review this week. 'That means abandoning the devastating austerity cuts to disabled families, matching the Scottish child payment UK-wide, abolishing the bedroom tax and scrapping the two-child limit and benefit cap. 'With 4.5 million children living in poverty in the UK, only bold and immediate action will do. 'The two-child benefit cap and bedroom tax must be abolished immediately, but that alone isn't enough to end child poverty. It's vital the Labour Government matches the Scottish child payment by raising the child element of Universal Credit across the UK. 'Scotland is the only part of the UK where child poverty is falling – and families receive the best cost-of-living help of anywhere in the UK. 'Westminster must match this action – or it will leave millions more children languishing in poverty.' A UK Government spokesperson said: 'We are determined to bring down child poverty and we have already expanded free breakfast clubs, increased the national minimum wage for those on the lowest incomes, uprated benefits in April and supported 700,000 of the poorest families by introducing a fair repayment rate on universal credit deductions. 'We will also publish an ambitious child poverty strategy later this year to ensure we deliver fully funded measures that tackle the structural and root causes of child poverty across the country.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
