The Chancellor Faces A Biggest Challenge: The EU Exit Bind
The chancellor has approached the imminent spending review like a reluctant swimmer creeping into icy water, striving to ease the unpleasantness through step-by-step entry.
First Steps and Tax Promises
Reeves commenced tackling the issue of limited revenue towards the conclusion of summer. To begin with, she would not to support former statements that tax rises in the previous year's financial statement would be the final ones.
Later, in early November, she took a bolder step into the freezing waters. Her remarks promised to "implement needed measures" to fund public services and control loan interest under control.
Manifesto Promise and Political Retreat
In just 10 days, the Treasury had withdrawn the suggestion. The campaign pledge still stood in the end. As any freezing-water bather understands, this cancelled immersion and trembling retreat is the most painful of all techniques. No tactic extends the discomfort like uncertainty.
It is hard to be resolute when selecting between levels of self-inflicted harm.
Optimism as Approach
Optimism has not been a effective tactic for the ruling party. Central of the prime minister's political platform was the futile belief of somehow meeting the public's call for improved state services without reversing large sums of Tory tax cuts.
Messaging Weakness
Never has both Starmer or the chancellor effectively communicated a feeling of national purpose to explain all this difficulty. Partly that is a issue of personality appeal. Both leaders are uncannily alike in their poor communication skills, wooden and reserved in a way that repels the public away instead of attracting them towards them.
Brexit Settlement and Financial Situation
Similarly to political pressure to support public services has forced the exchequer to concede that taxes must rise, the commercial requirement of improving prosperity makes it ever harder to ignore the expense of detachment from the EU market.
EU Relations and Negotiations
Ministers devoted a period dabbling in the early stages of realignment with the European Union: plans to end import controls on food items; a young people's exchange program. Vision went a further on energy, armed forces partnership, but no significant agreements has yet been signed.
Diplomatic Situation and International Standing
Lacking definite guidance and drive from No 10, discussions are bogged down. The European Commission says economic advantages are obtained with financial input to the European funds. UK ministers understand that's the arrangement. That doesn't lead them enthusiastic for a visible argument and campaigners howling betrayal over any cost ends up being agreed.
Financial Damage and Political Language
Economic reality has provoked some change in the administration's tone on the European question. The chancellor has started citing Brexit alongside the coronavirus crisis as a reason of financial harm that the finance ministry is toiling to repair. Other ministers have done the same, although they carefully assign the fault to "poor negotiation terms" or "the exit process", never just "Brexit".
Geopolitical Context and Long-term Possibilities
The issue of Britain's long-term partnership with the EU can't be limited to procedural changes and import controls when the global political landscape is in significant transformation. Given everything that has occurred since the Brexit vote, it feels appropriate still to be asking the big question: were the nation's concerns advanced by exiting the EU?
Final Analysis
These constitute harsh, difficult facts about the UK's predicament in choppy international waters. It is not surprising that Starmer and Reeves recoil from the challenge. It would take them way out of their depth, into currents that they will not swim against. So as an alternative they carry on nervously pacing the water's edge, hoping that possibly in the near future the tide will turn.