Daily Politics from the New Statesman Keir Starmer is in denial
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Dec 1, 2025 Keir Starmer's defense of Rachel Reeves raises questions about the government's grasp on the economic crisis. Discussion revolves around Reeves' claims regarding a 'fiscal black hole' that led to recent budget decisions. The hosts explore whether Labour can realistically address systemic economic issues, and if the budget represents a drift towards social democracy. Public sentiment shows deep despair over the cost-of-living crisis, while political dynamics suggest potential openings for the Conservatives to challenge Labour's narrative.
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Reeves Framed Tax Rises As Inevitable
- Rachel Cunliffe and Tom McTague argue Reeves framed tax rises as forced by the OBR rather than her choice.
- They conclude Reeves made a political choice to raise taxes and mischaracterised the fiscal drivers.
Government In Reactive, Corrective Mode
- Tom McTague says the government is constantly correcting its own mistakes and lacks coherent messaging.
- He argues Labour entered office expecting growth without tax rises but have been buffeted into reactive policy.
Budget Signals A Soft-Left Drift
- Rachel Cunliffe characterises the budget as drifting 'soft left' and classic social democracy.
- She notes the messaging is muddled between growth rhetoric and higher tax-and-spend policy.