According to sources within the Labour party, before Easter, all members of Keir Starmer’s shadow cabinet will meet with top civil servants in Whitehall departments as they ramp up preparations to become the next government.
The Observer has been told that Starmer recently held a first round of so-called “access talks” with the cabinet secretary Simon Case, the head of the civil service, at a “neutral venue” in London, to kick off an exchange of information between the official opposition and Whitehall in advance of a potential handover of power.
A prominent member of the party stated that the plan was for Starmer’s meeting with Case to be followed by meetings between his top team and the permanent secretaries of the departments they oversee in the next three weeks.
The source stated that it is their goal for all shadow cabinet members to have meetings with permanent secretaries in the relevant departments before Easter, especially with the possibility of an upcoming election in May. These discussions are crucial for pre-election preparations and ensuring a seamless transition in the event that the opposition takes over the government. It also allows for the building of relationships between opposition politicians and civil servants, rather than starting from the beginning once the election is over.
According to the Institute of Government think tank, the transfer of power often occurs overnight, making access talks the only chance for civil servants and a new government to share information and build relationships before the possible handover date. These talks are unusual as civil servants typically do not meet with opposition members of parliament.
Negotiations with Labour regarding access have been kept extremely confidential due to the party’s determination under Starmer to not appear presumptuous about gaining power. A senior source stated that there is fear of being perceived as overconfident and making assumptions. It is not a guaranteed victory.
According to recent budget updates, MPs are increasingly convinced that Labour is likely to become the next governing party. Despite Chancellor Jeremy Hunt’s decision to provide a second reduction in national insurance payments for working individuals, a recent Opinium poll for the Observer suggests that there has been no increase in Tory popularity since the budget was announced. In fact, more voters believe that the budget has resulted in an increase in taxes rather than a decrease. With Labour now at 41% (one percentage point lower than two weeks ago), they have extended their lead to 16 points over the Tories, who have dropped by 2 points to 25%. Additionally, Labour views Hunt’s proposal for further cuts in national insurance, and the potential elimination of it entirely, as a strategic opportunity in their favor, despite not knowing how it would be funded.
In an interview with the Observer, Rachel Reeves, the shadow chancellor, emphasized that Labour could now criticize the Conservatives for being fiscally irresponsible after they abandoned their proposed £28bn annual investment in a green prosperity plan, which the Tories had claimed was not financially backed.
Reeves stated that the Labour party has taken on the role of being economically responsible, while the Conservatives have become the party of implementing tax cuts without proper funding. She emphasized that this will be a point of contention that the Labour party will continue to address throughout the upcoming election campaign.
Labour says abolishing national insurance would cost £46bn a year, equivalent to £230bn over the course of a five-year parliament. If the Tories went ahead, they claim, it could have the same effect as the Liz Truss mini-budget in 2022, which led to soaring interest and mortgage rates.
Reeves stated that they required a long-term budget to promote growth and start the process of restoring public services.
However, Jeremy Hunt concluded his budget with a plan to eliminate national insurance, costing £46 billion and lacking funding. This would result in a significant deficit in public funds, endangering family finances and causing profound uncertainty for retirees.
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Under the leadership of Prime Minister Liz Truss, the Conservative party had previously introduced a similar proposal, resulting in severe consequences that are still being felt by millions of individuals.
A different member of Starmer’s team of advisors mentioned that Hunt’s idea of eliminating national insurance could give Labour the opportunity to counter the typical attacks from the Conservative party. “We can dismantle all of their arguments and flip them on their head. They have essentially proposed £46 billion in tax cuts without a proper plan.”
According to Opinium’s polls after the budget, Labour had a strong advantage in terms of economic competence, an area typically associated with the Conservatives. When asked which party they believed would use government funds effectively, 34% chose Labour while only 22% chose the Conservatives. Additionally, 33% expressed confidence in a Labour government led by Keir Starmer to efficiently manage the economy, while only 26% had trust in Rishi Sunak and the Tory party.
33% of respondents indicated that Labour would be the better choice for managing their individual finances, while only 20% chose the Tories.
Even though the budget included a decrease of two percentage points in national insurance, 31% of respondents believed that Hunt’s choices resulted in an increase in their taxes rather than a reduction.
Source: theguardian.com
