The Chancellor Faces A Major Issue: The EU Exit Bind
Rachel Reeves has handled this week's spending review like a hesitant swimmer edging into freezing water, attempting to lessen the unpleasantness through incremental entry.
First Actions and Tax Commitments
She commenced tackling the issue of insufficient revenue at the conclusion of summer. Initially, she refused to support former assertions that tax rises in the previous year's budget would be the last ones.
Then, recently, she took a larger step into the icy sea. Her address vowed to "do what is necessary" to fund public services and control borrowing costs down.
Election Promise and Government Retreat
After 10 days, the exchequer had retracted the implication. The manifesto commitment remained intact after all. Like every icy-water swimmer realizes, this aborted plunge and shivering withdrawal is the least effective of all techniques. No strategy extends the suffering like uncertainty.
It can be difficult to be resolute when deciding between levels of personally caused injury.
Expectation as Plan
Hope has not been a great approach for the administration. At the core of Keir Starmer's general election campaign was the vain expectation of in some way satisfying the public's desire for improved government services without reversing significant amounts of Tory reductions in taxation.
Messaging Deficiency
Never has either the prime minister or Reeves effectively conveyed a sense of shared mission to explain all this difficulty. To some extent that is a issue of leadership presence. Both leaders are uncannily similar in their poor communication skills, stilted and reserved in a way that drives audiences off instead of attracting them closer.
EU Exit Agreement and Financial Situation
In the same way that public demand to support government services has forced the exchequer to admit that revenue must increase, the commercial requirement of improving prosperity makes it increasingly difficult to ignore the cost of detachment from the European single market.
EU Partnership and Negotiations
The government devoted a period splashing in the early stages of closer ties with the European Union: proposals to end border inspections on agricultural goods; a youth mobility scheme. Vision went a bit deeper on power generation, military and protection collaboration, but nothing of substance has so far been agreed.
Political Reality and Global Standing
Without specific instruction and impetus from No 10, talks are bogged down. EU officials says single-market privileges are obtained with financial input to the EU budget. British officials are aware that's the arrangement. That doesn't cause them eager for a public row and political opponents screaming treason over any cost ends up being settled.
Economic Harm and Government Language
Financial circumstances has triggered some change in the administration's rhetoric on the EU relationship. She has started citing leaving Europe alongside the health emergency as a cause of commercial injury that the exchequer is striving to repair. Other ministers have followed suit, although they deliberately assign the blame to "a bad Brexit deal" or "the manner of departure", never just "Brexit".
International Environment and Long-term Prospects
The issue of the UK's long-term partnership with the European Union can't be simplified to administrative modifications and import controls when the entire international system is in tumultuous flux. Given everything that has happened since 2016, it feels appropriate still to be asking the fundamental issue: were the UK's priorities advanced by departing the EU?
Conclusion
These are cold, uncomfortable facts about the nation's position in turbulent global circumstances. It is expected that the prime minister and the chancellor shy away from the responsibility. It would take them beyond their capabilities, into trends that they cannot resist. So as an alternative they persist anxiously pacing the water's edge, praying that perhaps shortly the tide will turn.