Rachel Reeves tries to remedy her failure

There is no point in the Rachel reeves Mansion House speech today unless she has it cleared by Mr Burnham. The announcements she makes could b e cancelled next week when and if a new Chancellor takes up the post, or sidelined in the confusion and demands for new initiatives as a new Chancellor tries to grapple with the job.

The speech has been well heralded, with briefings telling us what will be in it. The centrepiece we read will be easier access to commercial loans for smaller companies. The Chancellor is right to realise that smaller companies have been badly hit by her blizzard of extra taxes, with NI on jobs, business rates on premises and IHT on passing on a family business. She should be able to see that smaller and medium sized businesses have struggled to make profits, cancelled new recruitment, and in some case have had to get rid of staff to try to make the books balance. Encouraging them to take out more loans to pay running costs or to help survive is bad advice. What they need is some relief from the tax attack, and some boost to their turnovers from a more prosperous country having more money to spend on the goods and services they supply.

The Chancellor may be so ill informed she thinks smaller companies need easier access to cash to expand. In  order to expand you need a growing market which she has done her best to stifle by taxing people with a bit of money to spend.   You do not expand your business until it is profitable and generating cash, and has potential customers to serve that you cannot fit in to your existing capacity.  The Chancellor needs to get to know the realities of her low growth bloated publlic sector approach.

What small businesses need to expand is more self generated cashflow. Cash generation comes from  more turnover and from realistic costs. It comes from generating profit. The problem is Labour still seem to see profit as exploitation or as something the state should confiscate. They do not see that the main use of profit is for a company to spend on expansion. A company can afford to borrow more for new property or equipment if it is generating enough cash to pay some of the costs. Try doing it all on borrowing and the company will struggle to pay the interest, let alone repay the debt when due.

11 Comments

  1. Sakara Gold
    July 14, 2026

    How disgraceful that some in Farage’s Reform UK are attempting to obtain the maximum publicity from the tragic death of Ann Widdecombe, including photoshoots pre-organised with the media

    The outrage that this has caused among Ann’s family and friends is palpable. For shame.

    Reply Have you spoken to the family? Important not to misrepresent their views or drag them into political debate against their will.

    Reply
    1. Mark B
      July 14, 2026

      And of course the Left kept stum on the sad death of Joe Cox and George Floyd ?

      Reply
    2. Lynn Atkinson
      July 14, 2026

      And you are privy to the feelings of Ann’s family and friends?
      Try just for once displaying some control and respect.
      SILENCE!

      Reply
  2. Mick
    July 14, 2026

    There is no point in the Rachel reeves Mansion House speech today unless she has it cleared by Mr Burnham.
    Let’s put it another way, There is no point in Liebour

    Reply
    1. Lifelogic
      July 14, 2026

      Reeves thinks she has left the economy in a better place than where she found it. She is as deluded as Starmer?
      Her policy is a Growth, Growth, Growth rain dance combined with endless economic strangulation of the real economy and a doom loop tax, net zero rip off energy and red tape agenda.

      Reply
  3. Lifelogic
    July 14, 2026

    From Wiki – Reeves cites the influence of her father on her social-democratic politics and those of her sister Ellie Reeves, also a Labour politician. She recalls how, when she was eight years old, her father, Graham, pointed out the then Labour Party leader Neil Kinnock on the television and “told us that was who we voted for”. Reeves says she and her sister have “both known we were Labour since then”. She joined the Labour Party at the age of sixteen.

    Perhaps indoctrination of immature young minds into mad religions like Socialism and the CO2 devil gas and other religions should be considered a form of child abuse? Although she read PPE Oxon she got four As in Maths, F Maths, Economics and Politics so should know better than her doom loop lunacy. A shame her father or teachers did not introduce her to sensible economists like Milton Friedman to explain reality to her rather than encourage her to follow dire politicians like Neil Kinnock.

    Reply
    1. Lifelogic
      July 14, 2026

      Former Labour leader Lord Neil Kinnock recently said that rejoining the EU is “the only patriotic thing to do” for Britain, calling Brexit a “self-inflicted wound”.

      So submission to an anti-democratic EU and ignoring the referendum is “patriotic” says the Kinnock. I suppose the failed dire politician has to earn his and his families huge EU pensions with their special tax rules?

      Reply
    2. Peter
      July 14, 2026

      I asked Google a question and got this answer :-

      ‘ You can certainly ask an AI to write a post in the highly specific style of the frequent commenter “Lifelogic” on John Redwood’s Diary.Lifelogic is a prominent, prolific, and distinct voice in the comments section, known for fiercely championing conservative, anti-net-zero, low-tax, and pro-Brexit principles.’

      I did not prompt for ‘PPE’ or ‘doom loop’. I wonder if AI would include them?

      Reply
  4. Ian Wragg
    July 14, 2026

    On the Marxist bible, profit is exploitation. Having money to spend is bad as only the government knows how to spend it.
    Rachel from complaints is a dyed in the wool communist and behaves as such.
    Bankrupting the capitalist system is necessary to rebuild in the always failing socialist utopia.
    Burnham will probably appoint Milibrain to accelerate the destruction before calling in the IMF to take control of government finances.

    Reply
  5. Mark B
    July 14, 2026

    Good morning.

    Oh what was it that former President Ronald Regan said about governments and taxation ? Ah, yes !

    “If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

    We are now at the final stage. Shame for Rachel it has come a bit too late 😊

    Reply
  6. Thierry
    July 14, 2026

    What smaller companies have REALLY been hurt by is Brexit. Extra paperwork, new rules to deal with, delays at the border – big firms can factor all that in, but it’s catstrophic for small firms. That’s why so many small firms are now in practice giving up on Mrs Thatcher’s big beautiful single market

    Reply Most small firms have never exported. They now find UK taxes and rules greatly impede their work at home.

    Reply

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