Britain’s new Prime Minister Keir Starmer has appointed Rachel Reeves as the country’s finance minister, marking the first time a woman has held the position.
This historic appointment follows the Labour Party’s decisive victory in Thursday’s general election, which ended 14 years of Conservative rule.
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Reeves, 45, who has a background in banking, expressed her gratitude on social media, stating, “It is the honour of my life to have been appointed chancellor of the exchequer. To every young girl and woman reading this, let today show that there should be no limits on your ambitions.”
Labour’s election campaign focused heavily on economic growth and wealth creation, diverging from the party’s traditional leftist policies.
“Economic growth was the Labour Party’s mission,” Reeves emphasized.
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“It is now a national mission. Let’s get to work.”
In a recent statement to business leaders, Reeves described Labour as “the natural party of British business” and promised “iron discipline” over public finances, drawing comparisons to former Prime Minister Margaret Thatcher.
However, unlike Thatcher’s privatization policies, Reeves supports a form of renationalization, particularly in the energy sector, inspired by U.S. President Joe Biden’s policies.
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Labour plans to establish Great British Energy, a publicly owned company aimed at driving the transition to green energy, in collaboration with the private sector.
James Wood, a political economy expert at the University of Cambridge, noted that Reeves and Labour are aiming for a “responsible” approach to managing public finances.
“When she talks about being an iron chancellor, I think what she means is: we’re going to balance the books and we’re going to be responsible — and we’re going to try and get Britain’s economy running… in a responsible way,” Wood explained.
Reeves has a history of overcoming challenges. Born in London to teacher parents, she became the British girls’ chess champion at 14 and later studied philosophy, politics, and economics at the University of Oxford, followed by a Master’s degree at the London School of Economics.
She worked as an economist for a decade, including a stint at the Bank of England, before entering politics.
Elected as the Labour MP for Leeds West in 2010, Reeves was appointed as Labour’s finance spokesperson by Starmer in 2021. Her sister, Ellie Reeves, is also a Labour MP.
Reeves’ appointment comes in the wake of public discontent with previous Conservative leadership, particularly following the economic turmoil caused by Liz Truss’s 2022 mini-budget. Reeves aims to distance Labour from such fiscal irresponsibility and promises a balanced, responsible approach to economic management.
