Winter fuel payments scrapped for those not on benefits, says Rachel Reeves
This is likely only act one of the difficult stuffpublished at 19:18 29 July
Chris MasonPolitical editor
Image source, PA Media
This is RachelReeves’s first big moment as chancellor of the exchequer.
This is her first big set ofchoices as she tries to convince you that her approach to managing the economyis better than what came before.
This was principally a political moment – anattempt by the new government to dollop blame on the Conservatives whileserving up the first helping of difficult stuff to announce.
The cuts cametoday and the tax rises are expected in the Budget in October.
The stand-outannouncements were on public sector pay and a hoped-for end to scratchy industrialrelations and strikes – but it does come with a hefty price tag.
Planned changes tosocial care in England delayed by the Conservatives, now scrapped by Labour, are the collective failure to arrive at a long-term solution to this huge issue forso many, now renewed yet again.
A government’s might is never greater than in itsopening months, hence this front-loading of cancellations and cutbacks, and thelikelihood is that this is only act one of the difficult stuff.
Tax rises for some -perhaps on capital gains, inheritance and pensions look likely in the autumn.
Rachel Reeves and Sir Keir Starmer will hope by the next general election fouror five years away this will all seem a distant memory.
Let’s see.