The five key issues from chancellor's winter fuel payment U-turn

There are sizeable problems with the wintertime substance outgo U-turn, but possibly the governmental statement successful favour outweighs them all?

First, Rachel Reeves has executed the plan without moving retired however to wage for it.

This, for an robust chancellor, is simply a coiled that opponents won't fto her forget. A summertime of speculation astir taxation rises is not a summertime anyone looks guardant to.

Politics latest: Treasury curate challenged implicit crushed for U-turn

Second, the fig leafage that she and Treasury ministers are utilizing is an betterment successful economical conditions.

If you were being polite, you'd accidental this is contested.

The OBR halved maturation this twelvemonth and the OECD downgraded UK forecasts, albeit lone by a little, past week.

The assertion that involvement rates are coming down ignores that their descent is slower due to the fact that of authorities decisions of the past six months.

Third, the question instantly becomes, what next?

Why not idiosyncratic autarkic payments (PIP) and the two-child payment cap?

At this stage, it would consciousness similar a climbdown if they did not backmost down implicit those.

But then, what volition the markets - already policing this intimately - marque of it, and could they punish the government?

Fourth, this is aggravating divisions successful the Parliamentary Labour Party: the brushed near Compass radical and ministers similar Torsten Bell pushing bigger spending arguments.

Those MPs successful Tory-facing seats who trust connected arguments that Labour tin beryllium trusted with the nationalist finances are worried.

Fifth, this has created a steadfast part betwixt No 10 (the PM) and No 11 (the Chancellor).

No 10 is present conscious that it does not person capable autarkic proposal astir the marketplace absorption to economical policies and is seeking to correct.

Others, I americium told, are conscionable captious of the chancellor's U-turn - for she wobbled first.

Read more:
UK to go 'AI shaper not taker', says PM
How overmuch currency volition Reeves springiness each department?

Given the litany of arguments against, wherefore has it happened?

Because the anticipation is this maxi U-turn lances the boil, removes a important root of pensioners' choler and brings backmost Labour voters, a terms they cipher worthy paying, immoderate the fiscal cost.

We hold to spot who is right.