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- By Michael Miranda
- 20 Jul 2026
Rachel Reeves has handled this week's budget similar to a reluctant swimmer creeping into freezing water, attempting to mitigate the unpleasantness through gradual entry.
The chancellor began addressing the issue of insufficient funds towards the close of summer. Initially, she declined to stand by former assertions that increases in taxation in last year's financial statement would be the last ones.
Subsequently, recently, she took a more significant stride into the freezing waves. A speech vowed to "implement needed measures" to support state services and control loan interest under control.
After 10 days, the Treasury had pulled back the hint. The campaign pledge still stood after all. As any freezing-water swimmer knows, this halted plunge and trembling pullback is the most painful of all approaches. No strategy draws out the discomfort like hesitation.
It's difficult to be decisive when deciding between degrees of personally caused damage.
Optimism has not been a effective approach for this government. At the core of the prime minister's general election campaign was the futile hope of in some way meeting citizens' call for better public services without undoing billions of pounds of Tory tax cuts.
Never has either the prime minister or the chancellor successfully expressed a sense of national purpose to validate all this pain. In part that is a problem of personality appeal. The prime minister and the chancellor are uncannily similar in their communicative deficiency, wooden and reticent in a way that drives the public back instead of pulling them closer.
Just as public demand to invest in public services has forced the exchequer to admit that levies must go up, the economic imperative of improving prosperity makes it more challenging to disregard the price of separation from the continental trading bloc.
The government devoted a year dabbling in the early stages of realignment with the EU: plans to eliminate border inspections on farm products; a youth mobility scheme. Ambition went a bit deeper on power generation, armed forces partnership, but no significant agreements has to date been finalized.
In the absence definite guidance and momentum from Downing Street, negotiations are stuck. EU officials says economic advantages are accessed with payments to the continental treasury. British officials are aware that's the deal. That doesn't make them enthusiastic for a open dispute and political opponents screaming disloyalty over the eventual amount ends up being paid.
Financial circumstances has caused some change in the government's tone on the European question. Reeves has started identifying leaving Europe alongside the coronavirus crisis as a reason of commercial injury that the Treasury is working hard to address. Cabinet members have followed suit, although they deliberately ascribe the fault to "poor negotiation terms" or "the way we left", never just "withdrawal".
The challenge of the nation's ongoing association with the EU can't be simplified to administrative modifications and border mechanisms when the global political landscape is in constant change. Considering everything that has happened since 2016, it feels legitimate still to be raising the fundamental issue: were the nation's concerns advanced by leaving the EU?
These are harsh, difficult facts about the nation's situation in uncertain world affairs. It is expected that Starmer and Reeves recoil from the responsibility. It would take them beyond their capabilities, into forces that they cannot resist. So rather they persist nervously pacing the shore, wishing that maybe soon the tide will shift.
Elara is a financial strategist with over a decade of experience in wealth management and entrepreneurship.