According to high-ranking sources within the party, all members of Keir Starmer’s shadow cabinet will convene with prominent civil servants within Whitehall departments before Easter as the Labour party increases its readiness to assume power in the next government.
The Observer has been told that Starmer recently held a first round of so-called “access talks” with the cabinet secretary Simon Case, the head of the civil service, at a “neutral venue” in London, to kick off an exchange of information between the official opposition and Whitehall in advance of a potential handover of power.
A high-ranking member of the party also mentioned that the plan was for Starmer to have a discussion with Case, followed by similar meetings between Starmer’s top team and the permanent secretaries of the departments they oversee, within a three-week timeframe.
A reliable informant stated that it is crucial for all members of the shadow cabinet to have discussions with permanent secretaries in the appropriate departments prior to Easter. This is necessary as there may be an upcoming election, potentially in May, and prompt action is required. These discussions, known as access talks, are a crucial aspect of pre-election preparation to facilitate a seamless transition in the event that the opposition party takes over the government. It also begins the process of establishing connections between opposition politicians and civil servants, rather than having to start from the beginning after the election.
The think tank, Institute of Government, explains that access talks serve as the only chance for the civil service and a new government to share information and build relationships before the handover of power, which usually happens overnight. These talks are distinct because it is not typical for civil servants to meet with members of the opposition.
Meetings with the Labour party have been kept highly confidential due to the party’s determination, under the leadership of Starmer, to avoid appearing overly confident in their pursuit of power. A senior source stated that there is a certain level of paranoia about being perceived as presumptuous and complacent. The outcome is not certain.
After the recent budget, it appears that members of parliament are becoming increasingly convinced that the Labour party will be the next government. Despite Chancellor Jeremy Hunt’s decision to give working individuals a second reduction in their national insurance payments in the past few months, a recent Opinium poll for the Observer shows no indication of a post-budget surge for the Conservative party. In fact, more voters believe that the budget actually increased their taxes rather than reducing them. Labour currently holds a lead of 16 points over the Tories, with 41% of the vote (down one point from two weeks ago), while the Conservative party has fallen 2 points to 25%. Labour also sees Hunt’s decision as a strategic advantage, as it opens up the potential for even more cuts in national insurance or the possibility of getting rid of it altogether, without specifying where the funds to support such a move would come from.
During an interview with the Observer, Rachel Reeves, the shadow chancellor, emphasized that Labour, who had recently abandoned their proposal to allocate £28 billion annually towards their green economic plan following criticism from the Tories about its funding, now had the opportunity to criticize the Conservatives as the party that lacked fiscal responsibility.
Reeves stated that the Labour party is now focused on economic responsibility, in contrast to the Conservatives who are promoting unfunded tax cuts. This point will be emphasized throughout the election campaign.
The Labour party estimates that eliminating national insurance would result in a loss of £46bn annually, amounting to £230bn over a five-year term. They argue that if the Conservatives implemented this change, it could produce a similar outcome as the 2022 Liz Truss mini-budget, which caused a significant increase in interest and mortgage rates.
Reeves stated: “In the previous week, we required a long-term budget that could stimulate growth and initiate the reconstruction of our public services.”
Jeremy Hunt concluded his budget by proposing a £46bn tax plan that would eliminate national insurance. However, this plan is not funded and would result in a significant deficit in the public finances. It also has the potential to jeopardize the financial stability of families and cause uncertainty for retirees.
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“When Liz Truss was prime minister, the Conservatives put forth a similar proposal, which has resulted in millions of people still bearing the consequences of that failed mini-budget.”
A different member of Starmer’s shadow cabinet stated that Hunt’s proposal to eliminate national insurance could give Labour the ability to counter the customary criticisms from the Conservative party. “We can dismantle all of their arguments and turn them around. They have essentially proposed £46 billion in tax cuts without a funding plan.”
According to a poll by Opinium, Labour was perceived to have a significant advantage over the Conservatives in terms of economic competence, an area that the Conservatives have historically excelled in. The poll showed that 34% of participants believed that Labour would utilize government funds efficiently, while only 22% thought the same of the Conservatives. Additionally, 33% expressed trust in a Labour-led government under Keir Starmer to effectively manage the economy, while only 26% had the same trust in Rishi Sunak and the Tories.
When inquired about for whom they would trust with their personal finances, 33% expressed preference for Labour, while only 20% chose the Tories.
Despite the two percentage points cut in national insurance in the budget, 31% of those questioned thought that the overall effect of Hunt’s decisions had been to put their taxes up rather than reduce them.
Source: theguardian.com
