Reeves to make Harvard case for EU ties and devolution as UK growth path
Former chancellor Rachel Reeves will argue at Harvard that closer EU ties and regional devolution are Britain's credible growth path, The Guardian reports.
What you need to know
Rachel Reeves will use a Harvard speech on Monday to argue that closer EU ties and regional devolution form Britain's credible growth path, The Guardian reports. It says the former chancellor credits Andy Burnham with facing reality on Brexit and that a plan to give regional leaders a share of national taxes now sits at the centre of the budget.
- The Guardian reports Reeves will say economic interests and geography point towards Europe
- The speech says pursuing a closer EU relationship, even rejoining, could be both credible and radical
- Reeves argues major cities outside London underperform European counterparts and calls for devolving power from Whitehall
- A plan to give regional leaders a share of national taxes now forms the centrepiece of the budget, per The Guardian
- Reeves ties her investment-led growth model to tax rises and a commitment to eventually reach £100bn in new capital spending
Brexit and Europe
Rachel Reeves will use her first public intervention since leaving government, a Harvard speech on Monday, to set out her view of Britain's economic future, The Guardian reports. According to the paper, she will say nobody in government could be in any doubt about the damage she believes Brexit has done, and that economic interests, shared values and geography all point towards Europe.
The Guardian reports she will argue that seeking a closer relationship with the EU, including eventual rejoining, can be both credible with markets and radical enough to meet public appetite for change. She is expected to credit Prime Minister Andy Burnham for facing the reality of Brexit head on, while noting her successor as chancellor, John Healey, has taken a different tone on rejoining.
Devolution and regional taxes
The paper says the themes of Reeves's lecture have become the agenda for Burnham's government. She has argued that major cities outside London underperform their European counterparts, that northern England has waited too long for action, and that regions should be freed from what she calls stifling Whitehall orthodoxies.
Her main policy proposal, a plan to begin giving regional leaders a share of national taxes long allocated by central government, now forms the centrepiece of Healey's budget, The Guardian reports.
Investment and tax rises
The Guardian links Reeves's growth theory to the employer national insurance increases she introduced, which it says funded an investment-led model despite their unpopularity. Fiscal rules were changed to permit a multi-year commitment eventually reaching £100bn in new capital spending, with money now flowing to NHS infrastructure, roads, housing, rail, energy and industrial projects. Reeves will say the shift required sacrifices a Starmer-led government failed to get the public to back.
What will Rachel Reeves argue in her Harvard speech?
The Guardian reports she will argue that closer EU ties and regional devolution are Britain's credible growth path, credit Andy Burnham with facing Brexit reality, and link the agenda to a plan giving regional leaders a share of national taxes.
Sources & context
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