Reeves’ Budget Wins the Day, But Stores Up Future Problems

Chancellor of the Exchequer Rachel Reeves did enough in her budget to help her and Prime Minister Keir Starmer survive, building back a vital fiscal buffer and expanding welfare.

Investors reacted positively. So did the rank-and-file Labour lawmakers who have frustrated their past spending plans. But on both fronts, there were few signs that the budget, with its £1.6 trillion ($2.1 trillion) of government spending, would by itself brighten the country’s fortunes in the longer term.

The plan offered little on growth — the government’s “No. 1 mission” — and no meaningful tax reform. Nor did it provide the sort ...