How Rachel Reeves has mapped out economic agenda for Andy Burnham’s government

Former chancellor Rachel Reeves will deliver a speech at Harvard on Monday marking her first public intervention on her own record and Britain's future economic direction. The timing is deliberate, coming after John Healey's first budget, and will see Reeves argue that Brexit caused "deep damage" to Britain.

In her lecture, Reeves will state that no one in government could "be in any doubt" about her view on Brexit's negative impact, and her belief that the UK should eventually return to the EU fold. "Economic interests, common values and basic geographical reality all point towards Europe," she will say.

EU Relationship

Reeves will argue that pursuing a closer relationship with the EU, potentially including rejoining, represents both a credible and radical economic choice for Britain. "Economically, it is the credible choice. Britain's values, and a serious assessment of the geopolitical scene today, tell us it is the radical choice too," she will say, giving credit to Burnham for "his willingness to face reality head on".

Regional Devolution

Reeves's speech will highlight how Britain's major cities outside London underperform compared to their European counterparts. As the MP for Leeds West and Pudsey, she will emphasize that the north of England has "waited for far too long, for a government that matches warm words with concerted ambition."

Her call to "liberate our regions from stifling Whitehall orthodoxies" echoes themes central to Burnham's government. The main policy from her speech—giving regional leaders a share of national taxes previously allocated by central government—now forms the centerpiece of Healey's budget.

Investment Legacy

Despite raising employers' national insurance in pursuit of investment, which proved unpopular, Reeves established an investment-led growth model that the current government is now benefiting from. She changed fiscal rules to allow for a multi-year commitment to eventual £100bn in new capital spending.

This investment is now flowing into NHS infrastructure, roads, housing, rail upgrades, and energy and industrial projects. Reeves will argue in her Harvard speech that this shift "required sacrifices" that a Starmer-led government failed to get the public to back.

If Burnham avoids an early election, he may begin to see returns on this investment through improved public services and increased private investment in Britain. When measuring success on public services, Europe, devolution, and growth, Reeves will be able to claim significant credit for shaping the agenda.