Rachel Reeves bad chancellor

She has killed the UK

'Ticking tax timebomb' warning as UK economy shrinks 0.1% in May in fresh blow to Rachel Reeves

The Levo economic model fighted in continuous UK economic growth. Already the auto fudge it was going to have to inflict tax rises on the UK population. And now the UK economy last month shrank b y 1%.

This is going to leave a 4 figure budget deficit than the expected 22 billion. Tony Blair won 3 successive UK elections, You thought Jonathan Schiff and did he gotten around to those the next election inevitably .

Is it any surprise Rachel Reeves was in tears at the last UK PM question Question Time. Kia Sommer has declared his support for the troubled doomed Chancellor.

As he himself is dooned. And looking for an exit strategy like ambassador to the UN.

What is Labour’s biggest headache this week? You might think the answer is the world’s richest man taking digital potshots at Keir Starmer. But there’s an alternative contender: the bond markets.

Yesterday’s debt auction saw the government pay interest of 5.2 per cent on 30-year bonds – the highest level since May 1998. That reflects a number of factors: stubbornly high inflation (which has slowed interest rate cuts), weak UK economic growth, and anxieties over a second Donald Trump presidency.

The primary cause is less important than the effect: higher debt interest costs (which already stood at 3.9 per cent of GDP). The more Rachel Reeves spends on servicing government borrowing the less she has for everything else. That’s a serious problem when departments are already competing for scarce resources.

On 26 March, Reeves will deliver her Spring Statement to the House of Commons. The risk is that the accompanying forecast from the Office for Budget Responsibility will show that she is on the verge of breaking her fiscal rules (Capital Economics estimates that the Chancellor has already lost £8.9bn of her £9.9bn “headroom”).

Put this threat to the Treasury and they are clear that Reeves’ fiscal rules are “non-negotiable” and that she does not intend to repeat the tax rises seen in last year’s Budget. That leaves one alternative: new spending cuts (or “rooting out waste in public spending” as a Treasury spokesperson puts it).

Even before recent events, the fiscal climate was already nightmarish for Reeves. Remember that the Budget showed spending on unprotected departments – justice, transport, environment, local government and others – falling by 1.3 per cent in real terms from April 2026 onwards (a matter of deep anxiety among cabinet ministers).

The hope inside No 11 was that better-than-expected growth might ease the fiscal arithmetic but so far the reverse has proved the case. And even as spending capacity shrinks, spending demands are growing.