Morning Star Editorial: The labour movement should call out Chancellor Reeves’ economy con

RACHEL REEVES is having us on. She is not prolonging austerity for the reasons pretended.
The Chancellor claims that it is imperative to balance the books to avoid a collapse in international money market confidence in the British economy. The ghosts of Liz Truss and Kwasi Kwarteng are conjured to underline the point.
It is for this reason that pensioners are to shiver in unheated homes this winter as their fuel allowance is cut, and it is for this that hundreds of thousands of children are to remain in poverty, thanks to the maintenance of the two-child benefit cap.
But even in its own terms — and this column would argue that the speculators should be faced down rather than pandered to under any circumstances — the argument is bogus.
The City itself, no less, has blown the whistle on Reeves and other Cabinet members who have echoed her line, including Commons leader Lucy Powell. Powell told the media that the new austerity was vital to stop a run on the pound.
A what? The Financial Times quotes a Paul Dale at Capital Economics as saying: “If there was a risk of a run on the pound I completely missed it.”
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