In a dramatic first move as Chancellor, Rachel Reeves has issued an urgent directive to every cabinet minister demanding immediate action to drive economic growth, declaring Britain's public finances are in the most dire state since official records began.
The newly appointed Labour Chancellor wasted no time in her first Treasury meeting, telling colleagues that the nation faces its "most challenging inheritance since the Second World War" and that boosting economic growth must become the government's "absolute national mission."
The Stark Reality of Britain's Finances
Reeves revealed shocking figures showing the scale of the challenge ahead. Public sector net debt has reached a staggering 99.8% of GDP - the highest level since 1961 - while the country is burdened with £22 billion worth of "unfunded spending commitments" left by the previous Conservative administration.
"The legacy we have inherited is the worst since the Second World War," Reeves stated bluntly. "That is why we have made the decisive commitment to increase economic growth."
Cabinet-Wide Growth Directive
In her first official act as Chancellor, Reeves has ordered every government department to:
- Identify key growth opportunities within their policy areas
- Prepare detailed plans for stimulating economic expansion
- Submit initial proposals within weeks rather than months
- Make growth their primary departmental objective
The move signals a fundamental shift in government priorities, with economic expansion becoming the central focus across all ministries from Health to Education, Transport to Energy.
Breaking from Conservative Economic Strategy
Reeves made clear this represents a clean break from previous economic approaches, telling ministers: "We cannot continue with the failed economic model of the last 14 years."
The Chancellor emphasised that sustainable growth requires "a new direction" and "a new way of doing government," with Treasury sources indicating this means moving beyond short-term fixes to address structural economic weaknesses.
The Road to Recovery
While acknowledging the enormity of the challenge, Reeves expressed confidence that with "ambition and determination" the new government can deliver the economic transformation Britain needs.
The coming weeks will see ministers working intensively to develop their growth strategies, with the Treasury coordinating what amounts to an economic fightback plan designed to rebuild Britain's prosperity from the ground up.
