Conducting economic policy in a time of war — both a military one and a mercantile one — is a huge challenge for any government. Ideological tenets that were forged in opposition, and at a time of near-zero interest rates, get ditched. They are replaced by pragmatism out of necessity. This has been the experience of Labour since it came to power last July.
In opposition, Labour could flirt with the magic money tree and modern monetary theory; in government, the global bond markets have demanded adherence to fiscal discipline. In opposition, Labour could lionise the international aid budget; in government it has cut that budget further to fund the UK’s creaking defences. In opposition, downbeat commentary about the UK economy and criticism of the
