Big economy speech will take no immediate pressure off Rachel Reeves
Don’t, whatever you do, call it a “relaunch”.
When the chancellor stands up and delivers her much-anticipated speech on Wednesday – with all sorts of exciting schemes for new infrastructure and growth-friendly reforms – she will cast it as part of the new government’s long-standing economic strategy.
Having begun the job of repairing the public finances in last October’s budget, this is, Rachel Reeves will say, simply the next step.
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Regardless of whether you believe that this is all business-as-usual, it’s hard to escape the fact that the backdrop to the chancellor’s growth speech is, to say the least, challenging.
The economy has flatlined at best (possibly even shrunk) since Labour took power. Business and consumer confidence have dipped. Not all of this is down to the miserable messaging emanating from Downing Street since July, but some of it is.
Still, whether or not this constitutes a change, most businesses would welcome her enthusiasm for business-friendly reforms. And most would agree that making it easier to build infrastructure (which is a large part of her pitch) will help improve growth.
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Reeves risks economic ‘doom loop’
But it’s not everything. What about the fact that the UK has the highest energy costs in the developed world? What about the fact that these costs are likely to be pushed higher by net zero policies (even if they eventually come down)? What about the fact that tax levels are about to hit the highest level in history, or that government debt levels are now rising even faster than previously expected.
None of that is especially growth-friendly.
The greatest challenge facing the chancellor, however, is the fact that very little of what she’s talking about in her speech is actually new. Most of these schemes, from the Oxford-Cambridge Arc (or whatever they’re calling it) to the multiple new runways planned around London, are very, very old. They’ve been blueprints for years if not decades. What’s been missing is the political will and determination to turn them into reality.
The new government may fare better at delivery. But it won’t be easy. And none of these projects will deliver growth immediately. Not until some time after the end of the parliament will they properly bear fruit.
The Bishop of Liverpool has announced his retirement days after facing allegations of misconduct from two women, including another bishop.
One woman said the Right Reverend Dr John Perumbalath kissed her without consent and groped her, while the second accused him of sexual harassment.
The bishop has vehemently denied the allegations – and in his retirement letter, published online on Thursday, he reiterated his denial.
The letter, shared by the Diocese of Liverpool, read: “Having sought the permission of His Majesty the King, I have today taken the decision to retire from active ministry in the Church of England.”
Addressing the accusations, he continued: “Since those allegations were made I have consistently maintained that I have not done anything wrong and continue to do so.
“I do not wish this story to become a distraction for this incredible diocese and its people whom it has been an honour and joy to serve,” the bishop says in his letter.
“This is not a resignation occasioned by fault or by any admission of liability.”
The exact date for when the bishop’s role will formally end is yet to be decided, but he is stepping back from ministering and leading the diocese as of Thursday.
The letter continued: “I have taken this decision for my own well-being, my family and the best interests of the Diocese.
“I have informed the Archbishop of York of my decision and I understand he will put in place the necessary arrangements for episcopal oversight of the diocese for the remainder of my time here and during the vacancy.”
Bishop Perumbalath has insisted his retirement is not an admission of guilt
The Archbishop of York Stephen Cottrell – who has faced calls to resign over separate safeguarding failures – said: “I respect his decision and thank him for his ministry.”
“My thoughts and prayers continue to be with all those who have been affected by this situation,” he continued. “I am committed to ensuring stability during this time of transition and will be putting the necessary arrangements in place to provide episcopal oversight for the diocese.”
An acting bishop will be announced in the coming days.
The Archbishop of York (pictured) has welcomed the decision – which comes at a tumultuous time for the Church of England
The diocese – which on Wednesday pressured the bishop to step aside – said in a statement: “We acknowledge his decision in taking this step for the good of the Diocese of Liverpool.
“This is a deeply painful situation, and we hold all concerned in our prayers.”
The misconduct allegations were reported by Channel 4 earlier this week but the first dates back to 2023, the Church of England confirmed.
It said: “The complaint was looked into according to statutory safeguarding guidance… and an independent risk assessment undertaken.
“This process concluded that there were no ongoing safeguarding concerns, but a learning outcome was identified with which the bishop fully engaged.”
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A “further disclosure was made by another woman” shortly after, the Church said. This was “assessed not to be a safeguarding matter but a matter of alleged misconduct,” it added.
Bishop Perumbalath’s resignation comes at a tumultuous time for the Church of England, which has recently seen Justin Welby quit as Archbishop of Canterbury over the handling of another case.
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