Rachel Reeves Faces A Major Challenge: The EU Exit Bind
The chancellor has handled the imminent budget similar to a unwilling swimmer edging into cold water, striving to ease the discomfort through step-by-step exposure.
First Actions and Tax Commitments
Reeves commenced addressing the problem of insufficient funds towards the close of the summer months. Initially, she refused to uphold former assertions that increases in taxation in the previous year's budget would be the final ones.
Then, in early November, she took a bolder move into the freezing waves. A speech vowed to "do what is necessary" to support state services and control loan interest down.
Manifesto Pledge and Government Backtrack
In just 10 days, the exchequer had retracted the suggestion. The manifesto commitment remained intact after all. Similar to any icy-water swimmer realizes, this aborted plunge and quivering withdrawal is the most painful of all methods. No tactic prolongs the pain like uncertainty.
It is difficult to be resolute when choosing between levels of self-inflicted injury.
Optimism as Strategy
Expectation has not been a successful approach for this government. At the core of the Labour leader's general election campaign was the futile hope of somehow fulfilling the public's call for improved government services without undoing billions of pounds of Tory reductions in taxation.
Rhetoric Deficiency
At no point has either the prime minister or Reeves adequately conveyed a feeling of collective goal to justify all this difficulty. Partly that is a challenge of personality appeal. The prime minister and the chancellor are uncannily similar in their ineffective messaging, stilted and reserved in a way that pushes audiences away instead of attracting them closer.
Brexit Deal and Financial Truth
Just as public demand to support government services has compelled the exchequer to concede that revenue must go up, the commercial requirement of improving economic expansion makes it more challenging to disregard the expense of detachment from the European single market.
European Relations and Talks
The government spent a period experimenting in the early stages of closer ties with the EU: plans to end import controls on food items; a young people's exchange program. Vision went a further on energy, military and protection collaboration, but nothing of substance has to date been agreed.
Diplomatic Context and International Status
Without clear direction and momentum from the prime minister's office, negotiations are stalled. The European Commission says single-market privileges are unlocked with financial input to the continental treasury. UK ministers are aware that's the agreement. That doesn't lead them keen for a visible argument and Nigel Farage howling treason over any cost ends up being settled.
Economic Damage and Political Language
Commercial conditions has provoked some change in Labour's rhetoric on the EU relationship. Reeves has commenced identifying Brexit alongside the health emergency as a cause of commercial injury that the Treasury is toiling to fix. Cabinet members have emulated this, although they carefully assign the responsibility to "unfavorable agreement" or "the exit process", never just "leaving".
Geopolitical Context and Long-term Outlook
The challenge of the nation's long-term partnership with the European Union can't be reduced to administrative modifications and border mechanisms when the entire international system is in significant transformation. Considering everything that has happened since 2016, it feels appropriate still to be posing the core matter: were the nation's concerns served by departing the EU?
Summary
These are harsh, difficult realities about the UK's predicament in turbulent global circumstances. It is understandable that both leaders flinch from the task. It would take them beyond their capabilities, into currents that they cannot resist. So as an alternative they persist apprehensively walking the water's edge, wishing that maybe soon the tide will change.