I think the reasons aren’t complicated. The UK is broke after COVID. Public spending is nearly close to 100 percent of GDP, and the debt payments the government must make are very expensive, over 109 billion a year.
Reeves must handle that. She has no money to spend. Public services require investment. She has three money sources; tax now, growth (increase tax receipts) or cuts. Borrowing is now not possible.
Number one on tax she committed not to do. Growth is not happening, and so you are left with cuts.
Reeves has lost her headroom on every cut she has asked for. She has got none of it. I do think she is not very good, but the fundamentals are awful. Labour MPs need to wake up. This isn’t a question of borrowing a few billion. This is a question of making cuts so the UK can afford what it has now.
Let’s say this government goes wrong, the economy continues to contract and we fall into recession. That is a real possibility. You will then be left with tax as a solution. Okay but who - the figures are dire. The tax system is a screwed now that you have to be paying high rates to actually contribute. Where does this money come from that is needed?