Yet the opening chapter of Labour’s time in government has been dominated by the Reeves operation to an unusual degree. The undeniable focal point for the remainder of the political year is not Starmer’s conference speech Tuesday or any fresh policy announcement, but the government-wide budget at the end of October.
When Starmer made a speech to the nation in the wake of riots across the country, the overwhelming takeaway was that voters could expect “painful” choices to come in the upcoming tax-and-spend event.
Behind the scenes, decisions on Labour’s nascent agenda are being dictated to a great extent by the Treasury, some claim. The same ex-official quoted above said: “The conversation is always what’s going to fly financially? Will this be seen as anti-growth? And [it’s] never does this politically work for the PM?”
Treasury advisers and officials are omnipresent in departmental decision-making, the adviser said. In stark contrast to previous governments, Starmer’s No. 10 is seen to be taking a more hands-off approach to the day-to-day running of government.
Giles Wilkes, a former Downing Street adviser who is now partner at consultancy Flint Global, said the Treasury was “dominant, particularly at the official level,” partly because the Treasury enjoys a greater level of staffing stability than No. 10, which is largely disassembled and remade at every election.
Even so, civil servants have noticed the Treasury “paying a lot more attention to other departments,” said Wilkes. That’s because it’s responsible for making good on Starmer’s pledge to get the U.K.’s anemic growth rate to the highest sustained level in the G7, a mission in which every ministry is expected to play its part.