Britain appoints Rachel Reeves in the role of the country's new fiscal leader, nicknamed the "Iron Chancellor."
In a significant political shift, Rachel Reeves, a former Bank of England economist and Labour MP, has been appointed as the new Chancellor of the Exchequer. This appointment, according to a former Tory sparring partner, David Gauke, has the potential to make Reeves a powerful figure of consequence in Whitehall.
Born in Lewisham, south London in 1978, the year Margaret Thatcher came to power, Reeves began her political journey in 2010 when she was first elected to the British House of Commons, representing Leeds West and Pudsey. Her political roots can be traced back to her parents, Labour-supporting primary school teachers, and her grandparents, Salvationist factory workers from Kettering.
Reeves' political career took an interesting turn when she contested a safe Tory seat in 2005. However, it was her time spent in Washington that significantly shaped her political outlook. During her stint, she gained high-level access to the Federal Reserve and Congress, and her civil servant husband, Nick Joicey, whom she met during this time, also works in the British government.
After university, where she read PPE at Oxford University in the late 1990s and was described by her tutor as "a good student; in a good year, probably the best", Reeves worked for six years as a Bank of England economist, including a stint on secondment to Washington. Afterward, she turned down a lucrative job offer from Goldman Sachs to return to Britain and pursue her parliamentary ambitions.
Upon her return, Reeves combined her parliamentary ambitions with an eye-opening stint at HBOS in Leeds on the eve of the bank's collapse. As a backbencher, she chaired the Commons Business Select Committee and led the probe into the collapse of Carillion. She also served in Ed Miliband's shadow cabinet and took charge of the work and pensions portfolio.
As Keir Starmer's shadow chancellor, Reeves emphasised "securonomics", a term that has become synonymous with her economic ideas. Her mantra that Labour's tough stance on public finances is "non-negotiable" will give her immense power in Whitehall. Her decision to "go for growth" carries cross-party support, according to The Economist.
Reeves has made good use of her time in the political wilderness to develop her own economic ideas. Her serious and determined demeanor, akin to a chess player, has earned her respect from both sides of the aisle. Despite starting with a lot of political capital, she may need a lot of luck to round out Labour's manifesto.
This article, an exclusive from our team of financial experts, first appeared in a website's magazine, offering early access to news, opinion, and analysis for subscribers. As the new Chancellor of the Exchequer, Rachel Reeves is poised to make a significant impact on British politics and the economy.
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