Rachel Reeves delivered her budget speech a couple of weeks ago and the period since then has helped crystalise a few things for me.
The first thing is the degree to which the government sets the framework. It sounds obvious, but governments really do make a difference to people’s lives. Placing more emphasis on health care, education, housing and the environment affects both how we see these things, and how well we measure up in addressing them. The increase in the living wage is a good example of a new focus on addressing inequality.
Secondly is the degree to which the previous government messed things up. Labour is having to address an unexpected shortfall of £22bn. That is a massive gap to have to try to fill. It’s not surprising that, at least this year, we don’t feel able to do everything we would like. Bluntly, the country can’t afford it and the responsibility for that sits with the previous government, their profligate spending, and their lack of investment.
The third thing is just how much people who are very rich indeed will try and defend their wealth – and how those who support them will say and do almost anything to keep the status quo. I expect newspapers owned by billionaire tax exiles to try to mislead their readers, but I’m still shocked that someone like Jeremy Clarkson can pose as a friend of working farmers.
The reality is that the budget, while not perfect, is a step in the right direction, and a clear statement of intent. The Chancellor committed to spend more in certain areas, but most importantly, she helped to lay the ground for increased economic growth. This is important because that is, long term, only way we can afford to sort things out.
One other thing is that the budget has changed the way that the government looks at the economy. Too often in the past our economic plans have relied on short-term measures. By setting out a ten year investment plan, Labour have demonstrated that we have to think long term – and that is where the real wins will be.
We all wish that the budget could have gone further, faster. But we are beginning to move in the right direction for the first time in more than a decade, and that is very welcome indeed.
