-- Rachel Reeves’ first challenge when it comes to delivering a delicately balanced UK budget at the end of the month is winning over an increasingly mutinous Labour Party.One City’s Plan to Re-Link a Neighborhood That Robert Moses Divided
The dissent presents a fresh challenge to Starmer’s fledgling government, which secured a landslide election win on July 4, but has since become mired in a scandal about ministers accepting freebies and a gloomy narrative about the UK’s economic situation. The test for Starmer and Reeves is to persuade their restless party — which had been in opposition for 14 years — that short-term pain is needed to deliver long-term gains and ultimately reelection in five years’ time.
Nevertheless, the budget’s underlying message will be positive, centered on a significant medium-term boost to infrastructure, the people said. A Labour official said ministers were shocked by a report late Friday that Reeves was considering a freeze on income tax thresholds, which they said broke the party’s campaign pledge not to raise taxes on “working people.” They questioned why Reeves was favoring this measure over larger taxes on wealth.
“Settling on a cross-cabinet line about what austerity is and is not will be crucial for not only selling the budget, but maintaining Cabinet and party unity,” said Stewart Wood, a Labour peer and former adviser to ex-premier Gordon Brown. A No. 10 official described that idea as naive, insisting Reeves was already pushing it as far as she felt she could get away with in terms of raising taxes and borrowing without tearing up the manifesto or her fiscal rules. The cabinet needs to hold the line for now and there will be a rosier picture ahead, another said. They suggested that ministers who don’t understand the fiscal situation and are seriously proposing breaking the party’s promises shouldn’t be in the government.
One government official characterized Reeves’ approach as prioritizing the bond market over the Cabinet. When voters go to the polls at the next election in 2029, they won’t remember the current rows about austerity, instead rewarding Reeves for mending the public finances and then investing in much-needed services, they said.WENATCHEE — Tij Iginla scored twice as the Kelowna Rockets blanked the Wenatchee Wild 4-0 on Friday night in the Western Hockey League.Yankees vs.
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