As the UK eagerly awaits the unveiling of Chancellor Rachel Reeves’ first budget, an undercurrent of unease is reportedly spreading among Labour MPs. Sources close to the party suggest that many are concerned about the potential ramifications of significant cuts to key departments, fearing it could set a damaging tone for the still-nascent government.
A Tough Inheritance
Insiders reveal that despite months of expectation management regarding the disastrous economic inheritance and the much-discussed £22bn fiscal black hole, the stark reality of limited funds and tight constraints on tax rises means that many of Reeves’ choices will inevitably be painful. As one Labour MP lamented, “We’re going to be compared to the Tories. It’s going to be really hard to explain the so-called boost to the NHS which doesn’t really touch the sides of what’s needed, alongside the cuts they’ve already planned to winter fuel payments and the two-child benefit cap which will undoubtedly put more pressure on the NHS.”
Managing Expectations
Crucially, there appears to be no Treasury-No 10 split, with Treasury insiders expressing private pleasure at the response to cabinet ministers writing directly to Keir Starmer to raise concerns about their budgets. “Number 10 gave them short shrift – and that’s been good for us,” one said. “Keir backs everything that we are doing.” Similarly, beyond a generally known minority of malcontents, concerns from Labour MPs are unlikely to be aired in public.
“I don’t think people have fully understood just how loyal the 2024 intake is. A lot of us were selected a long time in advance, and with a handful of exceptions, we’re all signed up to the Keir project. It’s nothing like the Tories in 2019, with a load of accidental MPs and then Covid to keep them all separated. Don’t expect any big rebellions.”
– Anonymous Labour MP
Setting the Tone
As the first Labour budget since Alistair Darling’s in April 2009, Reeves’ announcement is likely to be seen as a defining early moment for the still-new government. Speaking on Friday morning, New Labour grandee David Blunkett warned that it could set a tone that would be reflected in local and by-election results across the parliament. “If you’re going to get a second term, to do what you really want to do, on a long term basis, then you have to keep a degree of popularity,” he told the BBC.
With the budget looming, all eyes will be on Rachel Reeves as she attempts to navigate the treacherous waters of post-election economics. Will she be able to strike a balance between necessary cuts and aspirational spending? Can she placate the concerns of her own party while still delivering a budget that sets Labour up for long-term success? Only time will tell, but one thing is certain: the decisions made on Wednesday will have far-reaching consequences for both the government and the nation as a whole.
Crucially, there appears to be no Treasury-No 10 split, with Treasury insiders expressing private pleasure at the response to cabinet ministers writing directly to Keir Starmer to raise concerns about their budgets. “Number 10 gave them short shrift – and that’s been good for us,” one said. “Keir backs everything that we are doing.” Similarly, beyond a generally known minority of malcontents, concerns from Labour MPs are unlikely to be aired in public.
“I don’t think people have fully understood just how loyal the 2024 intake is. A lot of us were selected a long time in advance, and with a handful of exceptions, we’re all signed up to the Keir project. It’s nothing like the Tories in 2019, with a load of accidental MPs and then Covid to keep them all separated. Don’t expect any big rebellions.”
– Anonymous Labour MP
Setting the Tone
As the first Labour budget since Alistair Darling’s in April 2009, Reeves’ announcement is likely to be seen as a defining early moment for the still-new government. Speaking on Friday morning, New Labour grandee David Blunkett warned that it could set a tone that would be reflected in local and by-election results across the parliament. “If you’re going to get a second term, to do what you really want to do, on a long term basis, then you have to keep a degree of popularity,” he told the BBC.
With the budget looming, all eyes will be on Rachel Reeves as she attempts to navigate the treacherous waters of post-election economics. Will she be able to strike a balance between necessary cuts and aspirational spending? Can she placate the concerns of her own party while still delivering a budget that sets Labour up for long-term success? Only time will tell, but one thing is certain: the decisions made on Wednesday will have far-reaching consequences for both the government and the nation as a whole.
Another Labour source added, “Our campaign was focused on change. The expectations are high. If they’re going to make the tough announcements early with things like the winter fuel payment, they need to be confident and give people some hope on Wednesday.” The challenge for Reeves will be to balance the need for fiscal responsibility with the desire to deliver on Labour’s campaign promises and provide a glimmer of optimism for the future.
Positive Prospects
Despite the concerns, there are some positive stories expected to emerge from the budget. Health spending is tipped to rise, and changes to the government’s fiscal rules on debt set out by Reeves will open the taps on tens of billions of pounds more in much-needed infrastructure spending. Perhaps most politically useful of all will be the end of the 17-week gap between the election and the budget, a period many Labour MPs believed was too long and allowed a policy vacuum to be filled with endless scrutiny of the few known changes, such as the removal of the winter fuel allowance from most pensioners.
“People will start to think, what is it worth, being a Labour MP, if we are doing this?”
– Anonymous Labour MP
The Welfare Divide
Welfare cuts are set to be a key dividing line within the party. For some MPs, any major changes or reductions in this area would be a red line, particularly for disabled people or families. As one Labour member put it, “People will start to think, what is it worth, being a Labour MP, if we are doing this?” However, another source suggested that despite the potential for dissent, there is a strong feeling in No 10 and among many MPs that a tough approach to benefits is not unpopular.
A United Front?
Crucially, there appears to be no Treasury-No 10 split, with Treasury insiders expressing private pleasure at the response to cabinet ministers writing directly to Keir Starmer to raise concerns about their budgets. “Number 10 gave them short shrift – and that’s been good for us,” one said. “Keir backs everything that we are doing.” Similarly, beyond a generally known minority of malcontents, concerns from Labour MPs are unlikely to be aired in public.
“I don’t think people have fully understood just how loyal the 2024 intake is. A lot of us were selected a long time in advance, and with a handful of exceptions, we’re all signed up to the Keir project. It’s nothing like the Tories in 2019, with a load of accidental MPs and then Covid to keep them all separated. Don’t expect any big rebellions.”
– Anonymous Labour MP
Setting the Tone
As the first Labour budget since Alistair Darling’s in April 2009, Reeves’ announcement is likely to be seen as a defining early moment for the still-new government. Speaking on Friday morning, New Labour grandee David Blunkett warned that it could set a tone that would be reflected in local and by-election results across the parliament. “If you’re going to get a second term, to do what you really want to do, on a long term basis, then you have to keep a degree of popularity,” he told the BBC.
With the budget looming, all eyes will be on Rachel Reeves as she attempts to navigate the treacherous waters of post-election economics. Will she be able to strike a balance between necessary cuts and aspirational spending? Can she placate the concerns of her own party while still delivering a budget that sets Labour up for long-term success? Only time will tell, but one thing is certain: the decisions made on Wednesday will have far-reaching consequences for both the government and the nation as a whole.
Another Labour source added, “Our campaign was focused on change. The expectations are high. If they’re going to make the tough announcements early with things like the winter fuel payment, they need to be confident and give people some hope on Wednesday.” The challenge for Reeves will be to balance the need for fiscal responsibility with the desire to deliver on Labour’s campaign promises and provide a glimmer of optimism for the future.
Positive Prospects
Despite the concerns, there are some positive stories expected to emerge from the budget. Health spending is tipped to rise, and changes to the government’s fiscal rules on debt set out by Reeves will open the taps on tens of billions of pounds more in much-needed infrastructure spending. Perhaps most politically useful of all will be the end of the 17-week gap between the election and the budget, a period many Labour MPs believed was too long and allowed a policy vacuum to be filled with endless scrutiny of the few known changes, such as the removal of the winter fuel allowance from most pensioners.
“People will start to think, what is it worth, being a Labour MP, if we are doing this?”
– Anonymous Labour MP
The Welfare Divide
Welfare cuts are set to be a key dividing line within the party. For some MPs, any major changes or reductions in this area would be a red line, particularly for disabled people or families. As one Labour member put it, “People will start to think, what is it worth, being a Labour MP, if we are doing this?” However, another source suggested that despite the potential for dissent, there is a strong feeling in No 10 and among many MPs that a tough approach to benefits is not unpopular.
A United Front?
Crucially, there appears to be no Treasury-No 10 split, with Treasury insiders expressing private pleasure at the response to cabinet ministers writing directly to Keir Starmer to raise concerns about their budgets. “Number 10 gave them short shrift – and that’s been good for us,” one said. “Keir backs everything that we are doing.” Similarly, beyond a generally known minority of malcontents, concerns from Labour MPs are unlikely to be aired in public.
“I don’t think people have fully understood just how loyal the 2024 intake is. A lot of us were selected a long time in advance, and with a handful of exceptions, we’re all signed up to the Keir project. It’s nothing like the Tories in 2019, with a load of accidental MPs and then Covid to keep them all separated. Don’t expect any big rebellions.”
– Anonymous Labour MP
Setting the Tone
As the first Labour budget since Alistair Darling’s in April 2009, Reeves’ announcement is likely to be seen as a defining early moment for the still-new government. Speaking on Friday morning, New Labour grandee David Blunkett warned that it could set a tone that would be reflected in local and by-election results across the parliament. “If you’re going to get a second term, to do what you really want to do, on a long term basis, then you have to keep a degree of popularity,” he told the BBC.
With the budget looming, all eyes will be on Rachel Reeves as she attempts to navigate the treacherous waters of post-election economics. Will she be able to strike a balance between necessary cuts and aspirational spending? Can she placate the concerns of her own party while still delivering a budget that sets Labour up for long-term success? Only time will tell, but one thing is certain: the decisions made on Wednesday will have far-reaching consequences for both the government and the nation as a whole.
