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We met in one of the opulent 17th-century state rooms located upstairs at No 11 Downing Street—the very same room where she granted her first comprehensive interview as chancellor back in July 2024. At that time, she could never have imagined that just two years later, she and her immediate neighbour would be leaving Downing Street. When asked about her successor or her own future as chancellor, Reeves remained deliberately vague, offering no clear indications.
Reeves has consistently described the role of chancellor as her “dream job.” Despite this, she and her team appear resigned to leaving No 11, as the incoming administration in No 10 continues to keep its lineup under wraps. Reflecting on her tenure, Reeves emphasized the stability and confidence she believes she restored to the economy over the past two years. She remarked that “Andy will take over an economy that is much stronger than the one I inherited from the Conservatives just two years ago.”
During the interview, she aimed to shift the conversation toward what she called the “big picture,” highlighting positive signs such as declining government borrowing costs, a significant easing of inflation from its peak, enhanced investment in infrastructure projects like roads and railways, and economic growth that outpaces several closest international competitors. However, these achievements contrast with ongoing difficulties: inflation remains above the target, is predicted to rise again, growth continues to be sluggish, and the Bank of England recently cautioned that interest rates might need to increase once more. Furthermore, the nation’s debt is projected to be higher at the end of this parliament than when Labour assumed office, and families and businesses continue to face constrained spending power, as recent ONS data revealed a drop in disposable income.
A former senior minister shared that Reeves had “spent a lot of time and energy painting a picture of her grim inheritance in the expectation things would brighten up quickly and she could claim credit.” This source added, “By the time she found that things were different, with tight public finances, mushrooming welfare, and the economy stuck in a low-growth trap, she had used up all her political capital and was unable to win the big arguments on welfare reform.” They concluded, “It’s all actually sad because I think her instincts are generally OK, but by the time she figured out the right things to do, it was too late.”
A close political ally of Sir Keir Starmer, Reeves took on the role of shadow chancellor in 2021 during Labour’s campaign to regain power, which culminated in their decisive victory two years ago. Many Labour MPs believe that mistakes made in No 11 affected the government’s prospects shortly after Starmer and Reeves took office. Starmer himself identified the government’s decision to remove the winter fuel allowance for millions of pensioners—later partially reversed—as one of their missteps. A senior Labour figure remarked, “She’d underestimated the desire for radical change, and lacked political nous on key decisions like winter fuel.” Reeves, however, did not concede that this decision was a significant issue and preferred to focus on what she views as the economic progress achieved under her leadership. She also rejected suggestions that her relationship with the business community deteriorated following the rise in National Insurance contributions for employers. A City insider commented on this, stating, “There was so much goodwill, but it was genuinely staggering – it just went in a few weeks,” noting that increased costs prompted businesses to lay off staff almost immediately
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