Pressure on Labour to deliver promised change as spending review ushers in 'new phase' of government
Keir Starmer told his Cabinet in advance that last week's spending review marked the start of a "new phase" for the government, in which it would deliver on its promise of change.
It was that promise which won Labour a massive Commons majority just under a year ago, bringing a decisive end to 14 years of Tory rule.
But one of the new government's first acts, means-testing winter fuel payment for old age pensioners, proved a serious political mistake, alienating millions of voters and drawing accusations of a return to Tory austerity.
Chancellor Rachel Reeves has now effectively reversed the policy, restoring winter fuel payments to three quarters of pensioners.
And she used the spending review to set out Labour's spending plan for the years ahead. These include billions of pounds to build affordable homes, major investment in public transport projects, a significant boost for the NHS to fund more appointments and an expansion of free school meals.
In Scotland, the Chancellor gave the go-ahead for the UK's biggest supercomputer at Edinburgh University, as well as the Acorn carbon capture project in the North East.
Ms Reeves points to lower interest rates and higher wages as evidence of an improving economy which allows the increased spending.
But there is also a change of tone, acknowledging the urgency of delivery. She spoke of Britain being renewed, but added: “I know too many people in too many parts of our country are yet to feel it. The purpose of this spending review is to change that.”
Economic experts, however, expect the extra spending will mean higher taxes when the Chancellor delivers her budget in the autumn.
Labour promised at the election not to increase income tax, VAT, employees’ national insurance or corporation tax. But, as they say, other taxes are available - and some in the Labour party and beyond believe a wealth tax ought to be a serious option to ensure those rich in assets as well as income pay their fair share.
In her Commons speech, Ms Reeves rejected austerity and said she was making “Labour choices”. That’s exactly what many of her backbenchers want - and also many of the millions who voted the party into power last summer, looking for a clear move away from the Tories’ approach.
Now the pressure is on to deliver the promised change.