Spring Statement: Rachel Reeves 'must turn good intentions into effective measures'

Chancellor Rachel Reeves understands the economy’s structural problems but is unlikely to solve them, says Max King

Chancellor Rachel Reeves Holds Press Conference On The Spring Statement
Rachel Reeves delivered the Spring Statement on 26 March, 2025.
(Image credit: Ben Stansall - WPA Pool/Getty Images)

“Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism,” wrote Adam Smith, “but peace, easy taxes and a tolerable administration of justice.” Britain is hardly heading in the right direction; peace is precarious, taxes are the highest for 70 years and the administration of justice, whether in the legal process or as administered by unaccountable regulators, is barely tolerable.

Subsequent to Adam Smith, a fourth requirement should be added: a high level of domestically financed investment. Here, Britain is failing badly with inadequate, falling and often misdirected investment, such as carbon capture. More than half the companies in the FTSE 100 are buying back shares, yet very few are raising capital. Businesses are being acquired, but none are raising capital through flotation. Foreign direct investment is in retreat and government investment is driven by politics.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.