Rachel Reeves has three options to dodge an economic crisis and all are unthinkable
GuardianFEB 10
UK: Record January Surplus Falls Short of Treasury Targets
Above: UK Chancellor Rachel Reeves delivers a speech on economic growth for Britain at Siemens Healthineers on Jan. 29, 2025 in Eynsham, England. Image copyright: Peter Cziborra - WPA Pool/Getty Images via Getty Images
The Spin
Left narrative
Despite the surplus data, Rachel Reeves deserves support for her steadfast leadership in navigating one of the most challenging fiscal environments in recent history. While short-term solutions seem elusive, her long-term strategy of borrowing to boost public investment and infrastructure is the right approach to stimulate productivity. Growth may be sluggish, but Reeves is committed to tackling structural problems — making her essential to Labour's economic vision.
Right narrative
Reeves's handling of the economy is increasingly worrying, with the latest surplus data exposing the flaws in her approach. Instead of prioritizing fiscal discipline, she has chosen to burden the country with higher debt and spending. The undershoot in public finances shows Labour's inability to manage the national budget responsibly, leaving taxpayers to pay the price. Reeves' strategy risks worsening Britain’s debt crisis, fueling inflation, and stifling growth.