The Budget will reveal Rachel Reeves‘s vision for the future of the UK, rather than that of Sir Keir Starmer, say allies of the Chancellor.
MPs expect Ms Reeves to emerge from the October 30 announcement looking increasingly powerful as she sets out her plan for the economy, despite the tax-raising measures that are expected to hit families.
The Budget will give the Chancellor a chance to stamp her authority on a political project that has so far lacked any clear defining purpose.
With the Prime Minister faring badly in opinion polls following scandals over ‘freebies’ in a calamitous first 100 days in office, some in the party are looking to the future.
They think that if Ms Reeves delivers a successful Budget, she will seem increasingly like a viable party leader.
Chancellor Rachel Reeves speaks at the House of Commons in London, July 29, 2024. She will soon deliver the October budget
MPs expect Ms Reeves to emerge from the October 30 announcement looking increasingly powerful as she sets out her plan for the economy, despite the tax-raising measures that are expected to hit families
Ms Reeves seen in Westminster. The Conservatives described Ms Reeves’s upcoming Budget as a ‘betrayal’ of Britain
One source said: ‘Make no mistake, this will be Rachel’s Budget. You’ll see very little of Keir in it. It will be her vision for Britain’s future.’ The suggestion of a rival power base is reminiscent of the Blair-Brown clashes during the New Labour days.
It came as rows continued over departmental spending after the Chancellor submitted her Budget plans to the Office for Budget Responsibility on Wednesday evening.
She has reportedly clashed with Angela Rayner, the deputy prime minister and housing secretary, over plans to reduce some departments’ spending next year. Sir Keir is said to have rebuked senior members of his Cabinet after they urged him to reverse Ms Reeves’s planned spending cuts.
Key figures are said to have asked him to intervene to reduce the ‘absolutely huge’ spending constraints but he backed the Chancellor, The Times reported.
One source told the paper that ministers had to ‘get a grip’ and suggested some were ‘inexperienced’ and unused to the difficulties of being in government.
Ms Reeves is drawing up plans for £40billion of tax increases and spending cuts, with most of the money raised from higher taxes as she has pledged to avoid a return to austerity.
The Conservatives described Ms Reeves’s upcoming Budget as a ‘betrayal’ of Britain.
The party tweeted: ‘Rachel Reeves is planning to raise your taxes, something during the election she said she would never do. It’s a betrayal of the British people.’
Ms Reeves and Sir Keir repeatedly promised not to increase taxes on working people, a key pledge in the Labour Party’s pre-election manifesto.