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Economic Development

Budget 2024: Rachel Reeves already walking a tightrope - and it's about to get worse

It's been a long time coming, but Labour's first Budget is finally here. And for a party that's seen its poll lead disappear in no time, the stakes could not be higher

Prime Minister Keir Starmer meets with Britain's Chancellor of the Exchequer Rachel Reeves(Image: Hollie Adams - WPA Pool/Getty Images)

For any Chancellor, their inaugural Budget is always a significant event.

However, for Rachel Reeves, who will be stepping up to the despatch box today as Britain's first female top finance minister, she is set to make history, one way or another, as reported by .

The specifics outlined in Labour's first Budget after a 14-year hiatus from power will play a crucial role in establishing the terms and shaping Westminster's agenda for the remainder of the Parliament.

The success with which No11 navigates the delicate balance of tax and expenditure, and whether the Office for Budget Responsibility (OBR) believes their measures will stimulate growth, could become a pivotal moment for the relatively new administration.

Despite a landslide victory, Labour has seen their poll ratings rapidly decline since taking power.

If they get this wrong, steering through the turbulent waters of SW1 could start to become increasingly challenging.

Backbench Balancing

Labour has already quelled opposition from its own backbenches the group of MPs who do not hold a paid government position, and can therefore be more readily 'kept in line'.

Murmurs escalated into outrage over the decision to means test pensioners' winter fuel payments, with the move quickly escalating into a full-blown dispute.