Labor MPs with finance-related roles, such as those in the Treasury and business select committees, have shared a similar analysis privately.
An MP with a background in economics, speaking on condition of anonymity to speak candidly, said he was “not worried” and that “nothing of substance has changed in the last week on the British side”.
But others, looking further afield, admitted to being deeply concerned about how the Government will fund its promises to fix the NHS, reduce large court backlogs and keep local authorities afloat.
A Labor MP from the class of 2024 said his colleagues had yet to fully understand that “this is going to make life very difficult indeed”, while a second new Labor MP described the situation as “really difficult” to fill the commitments of its manifesto.
Two other MPs expressed frustration that Reeves and Prime Minister Starmer had still not developed “a proper, positive narrative” to counterbalance all the warnings of economic disaster.
O’Neill, a Reeves ally, argued that while 80 percent of bond turmoil is due to external factors, the remaining 20 percent is due to markets signaling they have no confidence in the party’s plans labor to stabilize and develop the economy.
“They’re going to have to be disciplined about spending,” he said. “Otherwise, markets are right to doubt it.”
James Fitzgerald contributed to this report.
