As she told me in 2022: “Politically, we disagree a lot. But I think the relationship between [David] Cameron and Osborne is something I would want to emulate with Keir.”
So there is a reason that the Cameron/Osborne relationship looks the rosiest. The pair worked in lockstep and even now are on good terms – Cameron just this week appeared on his old colleague’s Political Currency podcast for a special series. It’s hard to imagine the others doing the same – even if it would make for interesting listening.
But as the new year gets under way, can this last? With concern rising over the economic outlook for the next 12 months, their relationship is about to be tested. The problem? Of all the ministers sitting around the Cabinet table, it’s Reeves who faces the grimmest outlook going into the new year. Despite spending much of the election and first few months in government talking about economic growth, the Labour Party is struggling to come by any.
A new YouGov poll shows that Labour’s lead on the economy has evaporated. Of those surveyed, a mere 21 per cent said they trust Labour most on the economy – with 24 per cent opting for the Tories. Labour’s lead over the Conservatives on the issue earlier this year was seen as hard won and a key factor in the party’s election victory. It was this achievement that led to Reeves being feted by colleagues.
While Labour politicians will go on about the Tory inheritance, it’s clear that certain decisions by the Government have not helped matters. Negative talk on the state of the economy has hurt both business and consumer confidence.
Starmer can resolve the issue of political donations – without upsetting Farage
Read MoreA common complaint in the parliamentary party is that too many decisions have been made by the Treasury – with not enough attention paid to other departments. The spending review is under way and will see ministers go to battle for limited funds. Already some in the party whisper that the Chief Secretary to the Treasury Darren Jones could be made a scapegoat for difficult decisions.
Reeves will hope that her planning reforms and change to borrowing rules for capital spending will lead to growth in the medium term. Without it, Starmer and Reeves will find themselves in serious trouble. Reeves has said that she will not go back cap in hand asking for more taxes like she did in the Budget.
Katy Balls is political editor at ‘The Spectator’ magazine
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