Rachel Reeves Faces Her Major Challenge: The Brexit Dilemma
The chancellor has handled this week's spending review comparable to a unwilling bather edging into icy water, endeavoring to ease the unpleasantness through gradual exposure.
Early Actions and Revenue Promises
Reeves began tackling the issue of insufficient revenue at the end of the summer months. To begin with, she declined to stand by previous statements that tax rises in last year's budget would be the last ones.
Later, earlier this month, she took a more significant move into the icy waters. A speech promised to "take required actions" to support government services and control debt expenses low.
Election Promise and Government Retreat
In just 10 days, the exchequer had retracted the suggestion. The election promise still stood in the end. As any freezing-water dipper realizes, this halted immersion and trembling pullback is the most painful of all approaches. No strategy draws out the suffering like uncertainty.
It can be hard to be resolute when selecting between levels of personally caused harm.
Optimism as Plan
Optimism has not been a great strategy for this government. Central of the Labour leader's general election campaign was the futile expectation of in some way meeting citizens' call for enhanced public services without reversing significant amounts of Tory revenue decreases.
Communication Deficiency
Not once has both the prime minister or Reeves adequately expressed a feeling of national purpose to justify all this hardship. Partly that is a issue of leadership presence. Both leaders are uncannily alike in their poor communication skills, stilted and unforthcoming in a way that pushes the public off instead of attracting them closer.
EU Exit Agreement and Financial Reality
Just as electoral expectations to invest in state services has forced the finance ministry to acknowledge that levies must go up, the economic imperative of increasing economic expansion makes it increasingly difficult to ignore the price of detachment from the EU market.
European Partnership and Discussions
The government devoted a twelve months experimenting in the early stages of realignment with the EU: proposals to eliminate import controls on agricultural goods; a youth mobility scheme. Vision went a bit deeper on energy, military and protection collaboration, but no significant agreements has yet been signed.
Diplomatic Reality and International Position
Without specific instruction and impetus from Downing Street, negotiations are stuck. Brussels authorities says single-market privileges are accessed with financial input to the European funds. Government representatives are aware that's the arrangement. That doesn't cause them keen for a open dispute and Nigel Farage howling treason over whatever price ends up being settled.
Economic Harm and Government Wording
Economic reality has triggered some adjustment in Labour's tone on the European question. Reeves has begun identifying leaving Europe alongside the coronavirus crisis as a factor of economic damage that the Treasury is striving to fix. Government colleagues have followed suit, although they carefully ascribe the responsibility to "a bad Brexit deal" or "the way we left", never just "leaving".
International Environment and Future Possibilities
The challenge of the UK's ongoing association with the European Union can't be simplified to procedural changes and border mechanisms when the whole geopolitical order is in tumultuous flux. In light of everything that has occurred since the Brexit vote, it feels reasonable still to be raising the core matter: were Britain's interests advanced by leaving the EU?
Summary
These constitute cold, uncomfortable facts about the nation's predicament in uncertain world affairs. It is not surprising that Starmer and Reeves recoil from the challenge. It would take them beyond their capabilities, into forces that they will not oppose. So as an alternative they persist anxiously walking the water's edge, wishing that perhaps shortly the tide will turn.