The New Statesman | UK politics and culture

Rachel Reeves won't resign (yet) - here's why

Jan 16, 2025

Will Dunn, the Business editor for the New Statesman, provides sharp economic insights amidst the political turmoil surrounding Rachel Reeves. He argues why the Chancellor is resisting calls to resign, despite the looming tax increases. Dunn reveals a nuanced understanding of how government debt is calculated and suggests that Liz Truss may not be solely to blame for the economic crash. The discussion also touches on Tulip Siddiq’s resignation and the implications for Labour's discipline and credibility.

29:47

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Will Dunn

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Rachel Reeves faces pressure regarding her fiscal management, yet immediate leadership changes are seen as impractical for fostering economic stability.

The resignation of Tulip Siddiq raises concerns about the Labour Party's vetting processes, emphasizing the need for enhanced accountability and transparency.

Deep dives

Ceasefire Between Israel and Hamas

A ceasefire between Israel and Hamas has been announced, set to begin on Sunday, which involves the release of 33 Israeli hostages and approximately 1,000 Palestinian prisoners. While this is a significant development, it is framed more as an armistice than a comprehensive peace deal, marking merely a pause in hostilities rather than a resolution to the ongoing conflict. The dynamics surrounding this ceasefire are influenced by international pressure on both Israeli Prime Minister Netanyahu and Hamas, with the complex political landscape in Israel potentially complicating the timeline of the agreement. As such, while there are new expectations for dialogue and peace, many observers remain skeptical about the longevity and effectiveness of this truce, anticipating challenges ahead.

Intro

3min

Navigating Political and Economic Turbulence

18min

Resignation and Reputational Risks in Political Appointments

3min

Labour Party Accountability and Controversies

4min

Learning from Mistakes: The Challenges of Governance

2min

Rachel Reeves is under fire for her management of the country's finances.

With suggestions of an impending income tax raise, some have called for her to resign. Andrew Marr and Will Dunn join Hannah Barnes to explain why the Chancellor won't quit - yet.

Will Dunn also explains how government debt is calculated - and why the economic crash really might not have been (entirely) Liz Truss's fault after all.

The team also discuss Tulip Siddiq's resignation, and whether Labour have a two-tier approach to discipline.

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Articles mentioned in this episode:

How damaging is the Tulip Siddiq affair for Labour?

https://www.newstatesman.com/politics/uk-politics/2025/01/the-tulip-siddiq-affair-is-a-blow-labour

Will the bond markets defeat Rachel Reeves?

https://www.newstatesman.com/politics/economy/2025/01/will-the-bond-markets-defeat-rachel-reeves

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