'Angela Rayner taking charge of government policy is a frightening prospect for UK economy'

Deputy prime minister Angela Rayner is making moves to change the direction of our government. That should terrify us all, says Matthew Lynn

Deputy Prime Minister of the United Kingdom Angela Rayner, Britain's Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves
(Image credit: Chris Jackson/Getty Images)

In the run-up to the last general election, Rachel Reeves was sold by Labour’s media supporters as a super-smart economist with a plan to restore growth to the British economy. She had the ideas and experience, not least at the Bank of England, to make a real impact. Less than a year later, however, she is clearly damaged goods. Her first Budget was a catastrophe, hammering businesses with a steep rise in employment taxes that destroyed jobs, pushing through changes to the non-dom regime that have driven entrepreneurs out of the country in record numbers, and leaving far too little fiscal headroom to allow for any leeway on spending.

The prime minister has already had to step in and reverse her cuts to the winter fuel allowance, humiliating his chancellor in the process, and her planned savings to the spiralling welfare bill are facing fierce opposition from backbenchers. Reeves appears to have given up on growth and has no strategy left. She clings on to her office, but her reputation is in tatters.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.