Reeves tells BBC: Burnham needs worked-through plan to govern from the start
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- Rachel Reeves warned incoming PM Andy Burnham he needs a 'worked-through plan' to govern from day one, saying 'governing is hard in Britain, and lots of challenges and shocks will come his way' when he arrives in Downing Street in 'a little more than a week.'
- In what is likely her last major interview as chancellor, Reeves told Laura Kuenssberg on the BBC that she returned 'stability and trust' to the economy, citing lower government borrowing costs, inflation down from its peak, and growth outpacing the UK's nearest competitors.
- The article counters that economic headwinds remain: inflation is still above target and expected to rise, the Bank of England warned interest rates might have to go up again, national debt will be higher at the end of this parliament than when Labour took office, and ONS figures show disposable income falling.
- A former senior minister told the BBC that Reeves 'spent a lot of time and energy painting a picture of her grim inheritance,' adding 'by the time she figured out the right things to do, it was too late' to win big arguments on welfare reform.
- A City source said Reeves' National Insurance hike for employers rapidly destroyed business goodwill: 'There was so much goodwill, but it was genuinely staggering — it just went in a few weeks,' leading to staff layoffs.
- Keir Starmer has pointed to the decision to strip winter fuel allowance from millions of pensioners, later partly reversed, as one of the government's errors, while a senior Labour figure said Reeves 'underestimated the desire for radical change.'
- Reeves identified her toughest moment as crying in the House of Commons during PMQs last July, saying 'Don't cry on national television' was the hard lesson, made worse by the front-page photos the following day.
Why it matters: Reeves' exit interview hands Andy Burnham a politically awkward inheritance: Labour MPs blame No 11's winter fuel reversal and the employer National Insurance hike for souring Starmer's government, while the economy he takes over still has inflation above target, a Bank of England warning that rates may rise, and national debt set to be higher at parliament's end.
