A Welcome Respite for Labour
After months of internal pressure and chaotic speculation, a sense of relief washed over Westminster as Labour MPs gathered to celebrate Chancellor Rachel Reeves's first Budget. The atmosphere in Parliament's Strangers Bar was buoyant, a stark contrast to the dark cloud that had been looming. One minister captured the mood, stating, "It’s a good day, and we have to celebrate the good days."
For Keir Starmer's government, such positive days have been rare amidst leadership speculation, backbench unrest, and disappointing poll ratings. Despite a tumultuous run-up, including an extraordinary leak of key details by a watchdog, the Chancellor delivered a defiant Budget aimed squarely at hard-pressed households.
Key Measures Win Over the Party
The centrepiece of the Budget that particularly delighted Labour MPs was the decisive action on child poverty. The announcement to scrap the two-child benefit limit is projected to lift an estimated 450,000 children out of poverty, a move that resonated deeply with the party's core values.
One Labour MP told the Mirror, "If the Labour Party doesn't put dealing with child poverty at the centre of what we do, we're not the Labour Party." MPs were also bullish in the face of anticipated criticism, ready to counter the inevitable anger from right-wing parties over the Chancellor's £26 billion tax raid.
A third backbencher praised Reeves's performance, noting, "She has played it well... her socialist values that she displayed at the despatch box really went down a storm with us. We thought, hang on a minute, this is what we're here for." The MP contrasted this with perceptions of Keir Starmer being "a little bit, you know, well, vanilla at times," suggesting the Budget provided a much-needed injection of clear political identity.
Calming the Markets and the Party
At its heart, the Budget was designed with two key objectives: fixing the public finances to keep the markets calm and repairing the fractured relationship with its own MPs. Initial indications suggested the financial statement landed without major disruption, though a dispute rumbled on about whether Ms Reeves had misled the public over the size of the black hole in the public finances.
Politically, however, the immediate goal appears to have been met. The Budget successfully generated goodwill within the parliamentary party, temporarily quelling speculation about the futures of both the Prime Minister and the Chancellor. When asked if their positions were secure post-Budget, one MP replied succinctly, "Yep very safe …for now."
Another MP marvelled at the achievement, stating, "Calming the bond markets and the backbench left in one Budget, all while doubling the headroom, is a hell of an achievement." Sharon Hodgson, MP for Washington and Gateshead South, expressed immense pride, saying the Budget showed "you actually can make a silk purse out of a sow's ear."
Challenges on the Horizon
Despite the positive reception, the government is under no illusions about the challenges ahead. A Downing Street source emphasised that the Prime Minister is laser-focused on the cost of living, which remains the number one issue for families, something Starmer understands from his own childhood experiences.
For now, that message is cutting through. But the political weather is not all blue skies. Tough elections in Scotland, Wales, and English local councils in May represent a significant moment of danger. The persistent threat from Reform UK remains potent, and the government faces a monumental battle to repair the country's battered public services.
While the Budget has secured Keir Starmer and Rachel Reeves some much-needed breathing space and goodwill within their own ranks, the political climate remains uncertain. The clouds on the horizon have not fully dispersed.
