The budget 2025, resignation and misogyny
by Dave Sharratt

Let’s take a look at the recent budget finally delivered last Wednesday with an unhelpful early release from the OBR who admit leadership issues and its CEO has just resigned.

Despite the last two months of damaging media hype making numerous claims and counter claims about what Reeves was or wasn’t proposing with her being mocked or written off, a fully costed budget was delivered with sensible headroom built in. Despite the OBR erroneously releasing it, no markets were rocked. Interest rates look stable and are predicted to slowly fall over the next few years. Some good moves on poorer families; minimum wage rises for younger people; the triple lock retained; some useful cost of living measures and a mansion tax for houses over £2 million. These modest measures will help to stabilise an economy bruised by Brexit and 14 years of grinding austerity undermining the public services that many less well off people depend on.

Add the crony corruption of PPE procurement and the lavish spending on ‘test and trace’, it is gratifying to know that action is now being taken against those who cashed in on Johnson’s largesse.

Gone are the days when proper analysis of the Chancellor’s options, with likely outcomes discussed with economic experts. Now it’s a feeding frenzy of tittle tattle to fill an insatiable news cycle.

Here is the Observer’s view on yesterday’s budget:

"Looking back on the past three sorry months that have brought an embattled chancellor and a worried country to this budget, however, the OBR has much to answer for.

"It was created, after all, by George Osborne in order to make sure the bond markets have confidence that the Treasury’s numbers can be trusted. But the back and forth from the OBR on economic forecasts has had the opposite effect: in recent months, there has been growing speculation of a UK debt crisis, and even the possibility of the chancellor having to go cap in hand to the International Monetary Fund for a bailout…’

With regard to the resignation of Richard Hughes, see the quote from the BBC News report:

"The chairman of the Office for Budget Responsibility (OBR) has resigned following the Budget day error which saw a key document published early. Richard Hughes said in his resignation letter he took 'full responsibility' or the issues that were identified in the OBR's investigation.

'That investigation found the early publication of the OBR's forecasts was the worst failure in the organisation's 15-year history.

'It comes as Sir Keir Starmer defended the chancellor against claims she misled the public, after the OBR published a letter on Friday revealing it had told Treasury that higher wages would help meet the government's financial rules."

Mark Johnson, who studied economics, and a former business owner who lives in Devon and is a follower of Compass Northern Devon said in response to the resignation..

"So, this fella has resigned for being the boss at the time of the sh@tshow last week, releasing a budget before the Chancellor.

“True, it’s admittedly spectacularly useless BUT nothing like as useless as an organisation that has been in existence for 15 years, supposedly to provide a full, independent analysis of the British economy, who seem to have forgotten to look at productivity during the whole time of the previous Government.

“They are economists, productivity should be in every forecast, it’s core to the discipline that they profess to be experts in. Did they miss the fact that our whole investment and business confidence had been turned upside down by the Brexit vote until now or that austerity had had a massive effect on training, education and government investment in capital projects.

“Where have they been? Mars? Clacton? Did they sleep through Covid?

“This guy has been in charge for 5 years. Now that is a resigning matter."

There have been many budgets where claims are made that money is tight, black holes have been touted by the press and they have speculated on what the chancellor may or may not do. Then a rabbit is sprung out of a hat on the day which isn’t as bad as the collective expectation. I cannot recall many previous chancellors being accused of being as misleading as Ms Reeves with calls seeking immediate resignation.

Rachel Reeves is the first female chancellor and very early on in her time the job, ‘Rachel from accounts’ was out there which was unfair and sexist The level of criticism levelled at her more or less from the outset feels like misogyny at work.

But lets look at some previous efforts. Never forge that would be PM, Nigel Farage said Liz Truss' mini-budget was "the best Conservative budget since 1986". That quote didn’t age well like many of his quotes. The bond markets crashed, interest rates hiked, Kwasi Kwarteng was sacked as Chancellor of the Exchequer on October 14, 2022, with Prime Minister, Liz Truss going on 25 October. The market turmoil unleashed by Kwarteng's "mini-budget" was spectacular but, compaired to this, Rachel Reeves did pretty well really... justt don't tell the press!

Here’s a reminder of the praise heaped on the Truss/Kwarteng disaster in comparison to the treatment of Rachel Reeves’ recent budge.

Trump's tariffs and his ability to lead

By Dave Sharratt

So, it turns out that throwing the global economy into disarray without warning or, it appears, any sensible logical rationale, is a very bad idea indeed. In fact, it’s such a poor idea that even the extraordinarily inept occupant of the White House finally noticed.  

This has to be the U.S. equivalent of the foot-shooting Brexit moment but at great speed in its impact on the U.S. Perhaps Trump didn’t notice that his admirer, ex-PM Liz Truss, spooked the markets with her very wonky budget leading to her speedy resignation. Did Trump and his advisers not know that China held £759 billion of U.S. debt? Some analysts and investors feared that China could dump these debts in retaliation to anything Trump throws at them.

After Trump’s introduction of sweeping tariffs, prompting economic retaliation from across the planet he did a swift about turn to mollify a plunging stock market with a cooling-off on the global trade war Trump had so recklessly begun. High tariffs on almost 60 countries are being suspended for 90 days, though some will remain in place, as well as the baseline 10% charge on all imports to the US.

After days of tumbling turmoil the markets rallied, though confidence in the stability of the US administration is likely to remain very wobbly for the foreseeable future.

On top of this, the whole debacle also led to market speculation and some direct accusations that this was an insider trading scam on a global scale. It’s a ‘great time to buy’ said Trump.

The EU chose to suspend its retaliatory action which were originally drafted in response to the original tariffs levied by Trump earlier in his Presidency.

More than 75 countries reached out to Washington seeking negotiations when the US tariffs were announced, so Trump’s administration is likely to be kept busy for some time. The EU is among those preparing for negotiations, though it seems Brussels has no intention of going in on the back foot. The UK hedged and played for time by taking the decision to hold on any threats of retaliation.

European Commission President Ursula von der Leyen said the EU want’s ‘to give negotiations a chance’, and ‘if negotiations are not satisfactory, our countermeasures will kick in’.

It was with some relief that a global financial crisis has been, hopefully, averted for now. However Trump would do well not to underestimate the teeth behind the EU’s preference for negotiation. Let's see if his narcissistic reasoning is up to the challenge.  

A timeline of chaos

3rd April
The BBC reports that Donald Trump's politics have shifted considerably over his decades in the public sphere. But one thing he has been consistent on, since the 1980s, is his belief that tariffs are an effective means of boosting the US economy.

9th April

Trump pauses plans to hike US tariffs on most countries except China.

Trump says he will raise US tariffs on Chinese exports to 125% and unveils 90-day pause for other countries.

Trump pauses plans to hike US tariffs on most countries except China
.

April 10th
The EU responds by suspending its retaliatory 25% tariffs.

EU suspends retaliatory 25% tariffs on US goods after Trump U-turn.

April 10th
Donald Trump is facing accusations of market manipulation after posting on social media that it was a “great time to buy”

April 22nd
Donald Trump’s tariffs have unleashed a “major negative shock” into the world economy, the International Monetary Fund has said, as it cut its forecasts for US, UK and global growth.

Robert Reich, a U.S. Democrat and former Secretary for Labor, is an esteemed reporter on Trump and his questionable abilities. Follow him on Facebook

Dave Sharratt
April 2025

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More blogs by Dave…

Could Citizens’ Assemblies help to repair our broken democracy?
By Dave Sharratt

Ancient Athens applied deliberative democracy with the belief that political decisions should be a result of fair and reasonable discussion among its citizens. Unfortunately excluding women and slaves! Thankfully we have moved on from that, but we took our time, with women securing the right to vote a mere 100 years ago.

Citizens’ assemblies are carefully designed bring together a diverse group of people, randomly selected, to listen to credible and balanced expert information. Giving them the time to debate the issues and trade-offs with one another in facilitated discussions. This can lead to more legitimate outcomes with more informed and engaged participants.

One of the most successful and compelling examples in recent years has been the Irish citizens’ assembly on constitutional reform. This cleared the way for the referendum on abortion. The people listened to the recommendation made by assembly members and voted for change. In addition, there have been several other citizens’ assemblies run on issues ranging  from assisted dying to tackling the climate crisis.

Other countries have applied citizens’ assemblies and according to the OECD 320 citizens’ assemblies and juries have been held since 1986 across local, regional and national levels. There is plenty of best practice experience for government to draw on to create an honest, well-informed dialogue on thorny issues connecting the electorate with our politicians.

The Labour Party has made a commitment to apply the citizens’ assembly model to address the democratic deficit and disconnect with the electorate. They are looking closely at the Irish model and it is hoped that within the first 100 days of their tenure there will be a roll out of citizens’ assemblies.

Sue Gray (Downing Street Chief of Staff) said in February 2024:
"The citizens’ assemblies could be used to get agreement on House of Lords reform, give more powers to directly elected mayors and draw up regional-development plans to support house building".
She continued: “This is one way we can help resolve these questions by involving communities at an early stage". Let us hope the Government delivers on this.

See the article from the Constitution Society on this issue HERE>