‘Ill thought out’ or ‘strong performance’? Reeves’ Spring Statement divides MPs

Labour backbenchers are divided over the Chancellor’s Spring Statement, with some praising her “strong performance” even as others criticise “ill thought out” welfare reforms amid further cutbacks.

The Chancellor announced further welfare cuts, after the Office for Budget Responsibility said cuts promised last week would only raise £3.4 billion by 2029-30, not the £5 billion hoped for by officials.

The earlier cuts had already proved controversial, and the news that the government would have to go even further caused dismay among backbench MPs.

MP ‘disappointed’ by welfare reforms

One Labour MP told LabourList: “I’m disappointed the government is ploughing ahead with the ill thought out welfare reforms that could remove vital support from those who need it most. I’m further disappointed that there is no mention of public sector pay increases, the very workers we expect to deliver change on the frontline have to continue with real terms cuts to their salaries.”

They described the budget as “very academic”, and packed with figures and percentages that are “meaningless to the average British person”.

“While it is good news that public services are getting an additional £50bn over this parliament, and capital spending is up £113bn cumulatively, people need to feel that difference in their wallet. Being £500 per year better off is only a win if that money isn’t being sucked up by increased bills and costs.

“This was the perfect opportunity to ensure fiscal fairness and increase contribution from those most able to afford it. The economy could grow even faster if we introduced a wealth tax on assets instead of placing the burden on our poor and vulnerable.”

Brian Leishman, the often-outspoken MP for Alloa and Grangemouth, also called for a wealth tax as he hit out at the welfare cuts.

“I want a society that looks after our most vulnerable people and what was said will be dire news for disabled people.

“That’s not what a Labour government should do. We should be targeting the multi millionaire class with an annual wealth tax and try and equalise society, not impoverish the most vulnerable people.”

Another MP said: “The Chancellor’s statement did nothing to alleviate fears for colleagues over the impact these cuts to vital welfare support would have on our most vulnerable and working constituents.

“In all honesty, this felt like a statement entirely aimed at appeasing the OBR and businesses – not everyday, working people worried about whether they can put food on the table.

“Whilst we are being told this isn’t austerity 2.0, it’s only the beginning. The Government are focusing solely on economic growth and if we don’t get growth, then what? More cut backs?

“After speaking to colleagues, I don’t think there was anything said today that quelled the likelihood of a sizeable rebellion.”

‘It makes the last 14 years feel like a bizarre piece of performance art’

Another Labour MP told LabourList: “I desperately wanted to believe Ministers’ rhetoric about protecting the most vulnerable and genuinely supporting people into work, but now we’ve got the government impact assessment this is all unravelling.

“I’ve campaigned for a Labour government all my adult life, but if we’re now going to pursue policies that push 200,000 people, including 50,000 children, into absolute poverty, I’m no longer sure what the point was.

“It makes the last 14 years feel like a bizarre piece of performance art.”

‘Convincing and reassuring’ from Rachel Reeves

But other MPs rowed in behind the Chancellor.

Peter Lamb, the MP for Crawley, praised the Chancellor’s “sensible” Spring Statement.

However, he added: “Yet, on welfare, we are again asking some of the poorest, most vulnerable, people to go without instead of considering other options.”

Phil Brickell, the new MP for Bolton West, commended the Chancellor’s delivery.

“Strong performance. Good news on OBR forecasts on growth and living costs. Glad to see renewed focus on cracking down on tax evasion and aggressive avoidance by investing in HMRC.”

Mike Reader, the new MP for Northampton South, said the Spring Statement was “a result for YIMBYs”.

“Planning reform and investment delivering the biggest positive growth impact that the OBR have ever reflected in their forecasts. That’s more money to invest in the public services we all need.”

Luke Akehurst, the MP for North Durham and secretary of party moderates’ group Labour First, said: “This was a very convincing and reassuring Spring Statement from Rachel Reeves, that received vocal support in the chamber from the PLP.

“The extra spending on defence – above what has already been announced – is very welcome, particularly as it will see investment in skilled manufacturing jobs across the country. The OBR’s uplift in projected growth for the next four years shows our planning reforms and capital spending are having the impact they should.”

Read more of our Spring Statement news and analysis:

• ‘Ill thought out’ or ‘strong performance’? Reeves’ Spring Statement divides MPs
• Reeves under fire from Labour’s three biggest unions
• List of councillors quitting over welfare amid further cuts
• The four Labour achievements Reeves is trumpeting
• MPs: ‘Let’s soothe the nation, not kick it in the teeth’
• Reeves ‘confident’ civil service could cut 10,000 roles as Blunkett decries fiscal rules

And read more commentary on the Spring Statement:

• ‘Why not draft in Martin Lewis to fill the fiscal hole?’
• ‘Ministers must reject failed Tory orthodoxies of the past and put people before profit again’
• ‘The Chancellor must not make foreign aid cuts worse’
• ‘People want New Labour-style spending now. Here’s why it’s just not possible’

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