Chancellorship of Rachel Reeves

Rachel Reeves became Chancellor of the Exchequer on 5 July 2024, upon her appointment by Prime Minister Keir Starmer, following Labour's victory in the 2024 general election. She succeeded Conservative chancellor Jeremy Hunt, and became the first woman to hold the office of Chancellor in its 708-year history.

In this role she has adhered to "modern supply-side economics", an economic policy that focuses on infrastructure, education and labour supply by rejecting tax cuts and deregulation. It is heavily inspired by Joe Biden's economic policy, particularly his Inflation Reduction Act. She coined the term securonomics in 2023 to refer to her version of this economic policy.

Background
Rachel Reeves was appointed Shadow Chancellor in May 2021, following a shadow cabinet reshuffle. Over her three years in office, Reeves proposed to scrap tuition fees, no re-introduction in a cap on bankers' bonuses, and a plan to nationalise the railways.

Securonomics
Since 2022, Reeves has adhered to "modern supply-side economics", an economic policy which focuses on infrastructure, education and labour supply by rejecting tax cuts and deregulation. In May 2023, Reeves coined the term "securonomics" to refer to her version of this economic policy, originally in a public address at the Peterson Institute for International Economics. It is heavily inspired by US president Joe Biden's economic policy, particularly his Inflation Reduction Act. Securonomics is based on the belief that globalisation has failed to achieve its stated aims and that economies in the Western world must adapt in response. It would involve a productivist "active state" taking a more active role in managing the free-market economy, boosting production and drawing up industrial policy, stronger supply chains, and more economic cooperation with international allies with similar economic goals. Reeves believes that the active state is part of an "emerging global consensus" led by Biden's administration which will replace the neoliberal economic consensus, and that economic policy must be driven by the need for security.

In an interview with the Financial Times in May 2023, Reeves said securonomics had to be based on "the rock of fiscal responsibility". She said her proposed £28 billion climate investment plan, Labour's version of the Inflation Reduction Act, had to "fit within her fiscal rules". In June 2023, the investment plan was revised to a gradual roll-out where the annual investment would rise gradually to £28 billion by around 2027. She argued that following the economic impact of the 2021–2023 global energy crisis, food price crisis and the Truss government's "mini-budget", the plan "will only be possible if we have an iron grip on public spending and tax receipts". The New Statesman reported that in an interview Reeves said "a Labour government would not introduce annual wealth and land taxes; raise income tax; equalise capital gains rates and income tax; rejoin the European single market and customs union; change the Bank of England's inflation target and reform its rigid mandate; or take private utilities into public ownership, except for the railways".

Tenure
Reeves was appointed Chancellor of the Exchequer by Prime Minister Keir Starmer on 5 July. She became the first woman to hold the office of Chancellor in its 708-year history. On taking office Reeves has said that since there is "not a huge amount of money" the focus will be on unlocking private-sector investment, as she believes "private-sector investment is the lifeblood of a successful economy." She made her first statement as Chancellor two days later, announcing measures to grow the economy. Reeves also announced her first budget would be released later in the year in the autumn.

"It is such an honour to be here today as the Chancellor of the Exchequer. I know that responsibility that brings to guide our economy through uncertain times, to restore stability in an age of insecurity, to build prosperity that draws on the talents of working people. To every young woman and girl.... to every young woman and girl watching this: let today show that there should be no ceilings on your ambitions, your hopes or your dreams."