{"id":82790,"date":"2025-06-01T07:55:18","date_gmt":"2025-06-01T06:55:18","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=82790"},"modified":"2025-06-01T07:55:18","modified_gmt":"2025-06-01T06:55:18","slug":"the-money-rachel-reeves-needs-is-readily-available-all-that-is-lacking-is-the-understanding-on-how-to-use-it","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/06\/01\/the-money-rachel-reeves-needs-is-readily-available-all-that-is-lacking-is-the-understanding-on-how-to-use-it\/","title":{"rendered":"The money Rachel Reeves needs is readily available. All that is lacking is the understanding on how to use it"},"content":{"rendered":"<p>Andrew Rawnsley <a href=\"https:\/\/observer.co.uk\/news\/opinion-and-ideas\/article\/this-chancellor-is-a-picture-of-restraint-holding-a-spending-review-with-little-to-spend\" target=\"_blank\" rel=\"noopener\">wrote this in The Observer<\/a> this morning:<\/p>\n<blockquote><p>Nigel Farage can promise the moon on a stick. Sir Ed Davey can oppose every tax rise while bemoaning every spending curb. They enjoy the luxurious privilege of being opposition leaders many years ahead of a general election. For the residents of Downing Street, there is no magic money tree.<\/p><\/blockquote>\n<p>It takes years in the Westminster bubble, with a mind dulled by far too many lunches with the occupiers of desks at the Treasury, to write something so crass.<\/p>\n<p>The reality is that if Reeves wants to spend, she can. She can:<\/p>\n<ul>\n<li>Borrow from the Bank of England.<\/li>\n<li>Borrow from financial markets, creating the capacity to do so for more conrsructuvbe purposes by ending quantitative tightening, which is sucking \u00a3100 billion a year out of markets right now.<\/li>\n<li>Raise taxes on the wealthy. U have shown her how to do it, very straightforwardly.<\/li>\n<\/ul>\n<p>The options are money creation, borrowing and tax, or a mix of all three to control inflation.<\/p>\n<p>There is no shortage of money.<\/p>\n<p>There is only a lack of three things:<\/p>\n<ul>\n<li>Understanding that money is available.<\/li>\n<li>A willingness to use the options available.<\/li>\n<li>An understanding that balancing the economy is much more important than balancing the books.<\/li>\n<\/ul>\n<p>One day, we might get a Chancellor who understands all this. Rachel Reeves is not that person.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Andrew Rawnsley wrote this in The Observer this morning: Nigel Farage can promise the moon on a stick. Sir Ed Davey can oppose every tax<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/06\/01\/the-money-rachel-reeves-needs-is-readily-available-all-that-is-lacking-is-the-understanding-on-how-to-use-it\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204,35,118,174,106],"tags":[],"class_list":["post-82790","post","type-post","status-publish","format-standard","hentry","category-economic-justice","category-economics","category-labour","category-modern-monetary-theory","category-politics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/82790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=82790"}],"version-history":[{"count":1,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/82790\/revisions"}],"predecessor-version":[{"id":82791,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/82790\/revisions\/82791"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=82790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=82790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=82790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}