Labour’s big challenge will be separating style from substance

Holding a big reception in a genuine greenhouse is a bold strategy, but that’s what Labour Together – the think-tank/campaigning group that has done more to propel Keir Starmer and Starmerism to Downing Street – managed last night, in the Royal Horticultural Society on a day not struggling for humidity.

The venue was a late change, admittedly, thanks to the hundreds of late RSVPs. Being close to power is a powerful aphrodisiac for many in Westminster.

Rachel Reeves was the star turn, the Chancellor preaching to the converted. It was, it’s fair to say, a friendly audience. 

The new City minister, Tulip Siddiq, is then to be applauded for fronting up to a more sceptical audience in our pages today. We know our readers spend their days separating style from substance, and that will be Labour’s challenge over the next few years.

We also know that for all of the City’s frustration at the constant chaos of the Tory party over recent years, the Square Mile’s previous experiences of Labour governments has not been universally positive, and that is still giving many cause for concern.

Fundamentally, the acid test for this Labour government will be the budget in the autumn. Many economists capable only of over-interpreting the arbitrary “fiscal rules” are of the opinion that should a Labour government wish to squeeze the pips on business, it will have to do it sooner rather than later.

A hike to capital gains tax, or further windfall taxes, would spark real fear amongst the City establishment that more pain is to come.

Rachel Reeves said last night that one day in government is better than a lifetime in opposition. One day in government is also a hell of a lot harder than opposition, too. Let’s hope Reeves et al don’t flunk their first real test.

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