In defence of 'Rachel from accounts'

The media love to campaign against a particular minister and bring them down to demonstrate their power.  Tulip Siddiq, the Economic Secretary to the Treasury, is in their sights at the moment.  KemiKaze has called for Starmer to dismiss her. She has reported herself for investigation and in any case is a minor prize.

The major target is Rachel Reeves with the right-wing media gleefully reporting that she will be out of a job in a year. Quite a bit of this commentary is misogynistic, not least from buffoon Boris Johnson whio likes to call her 'Rachel from Accounts'.   

As she is lockstep with Keir Starmer, he is the real target.   There have been allegations online that a prominent British commentator is colluding with Elon Musk to find ways of bringing down a legitimately elected government.  I didn't hear so many complaints about the first past the post system when the referendum to make a modest reform of ir was voted down.

There have been a few missteps.   Limiting the winter fuel allowance was the right decision but too politically costly for the sums saved.   It was not a measure targeted on those who needed it: last year I had to spend time and effort researching energy charities to give away the money I had received as a higher rate taxpayer.

As for the employers' national insurance surcharge, I am surprised that larger companies with substantial profits such as retailers cannot absorb it.   As for smaller business, to judge by the town I live in, the hospitality industry has substantial structural overcapacity.   Business has not made any constructive suggestions about how the fiscal gap might otherwise be filled.

Reeves is alleged to have 'fled' to Beijing on a prearranged visit because of some turmoil in the gilts markets which was evident in the equivalents in France and Germany.   The real issue here is concern about the impact of the Trump presidency on the US economy with tariffs stoking inflation and hence affecting the willingness of the Federal Reserve to reduce interest rates which in turn has global impacts.

Comparisons with the IMF intervention in 1976 are invalid.   In ant case, the subsequent literature shows that the extent and depth of the problem then was exaggerated, but played into the hands of those who wanted to cut public expenditure.

David Smith in the Sunday Times today offers a balanced, informed and proportionate analysis of recent events.  He points out that although the pound has weakened against a strong dollar, although less so against the euro.   He comments: 'Comparisons with the autumn of 2022, when Liz Truss was prime minister and there was a loss of control of fiscal policy, are silly. Although gilt yields are higher now than then, they are close to the level of short-term official interest rates, the 4.75 per cent Bank rate.'

What we need to do, as Smith urges, is to focus on the underlying causes of our present problems: weak economic growth and very weak productivity.   I agree, but these problems predate the arrival of Rachel from Accounts.