Nov 28 2024 2 mins
Rachel Reeves appears to have been backed into a corner this week as she faced the wrath of the CBI at their annual conference in London.
Having relied on the flimsiest of semantics to justify her raising national insurance rates and thresholds for employers, it seems that she was left with little chance but to tell the bosses' union that this was her only opportunity to set the country's finances on a credible path and that she would not be returning like Oliver Twist to ask for more.
She has started on a dangerous path since her pledge demands that growth increases significantly over the next two or three years to allow the Treasury to see sufficient inflows in taxation to allow significant expenditure on public services and the NHS to happen.
Although pensioners and farmers will still have plenty to say, Reeves will hope to draw a line under her first 100 days as Chancellor, which has not gone exactly as she had hoped.
Opposition MPs are still reminding her of the apparent “errors” in her CV, in which she claims to have significantly more experience as an economist than is the case. It would be ironic if such a “schoolgirl error” made her job untenable.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.
Having relied on the flimsiest of semantics to justify her raising national insurance rates and thresholds for employers, it seems that she was left with little chance but to tell the bosses' union that this was her only opportunity to set the country's finances on a credible path and that she would not be returning like Oliver Twist to ask for more.
She has started on a dangerous path since her pledge demands that growth increases significantly over the next two or three years to allow the Treasury to see sufficient inflows in taxation to allow significant expenditure on public services and the NHS to happen.
Although pensioners and farmers will still have plenty to say, Reeves will hope to draw a line under her first 100 days as Chancellor, which has not gone exactly as she had hoped.
Opposition MPs are still reminding her of the apparent “errors” in her CV, in which she claims to have significantly more experience as an economist than is the case. It would be ironic if such a “schoolgirl error” made her job untenable.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.