Reeves faces mounting pressure as Britain struggles with domestic challenges and global turbulence

As the UK grapples with a worsening economic outlook, Prime Minister Keir Starmer may soon need to find someone to shoulder the blame. All signs point to Rachel Reeves, the Chancellor of the Exchequer, as the potential scapegoat for Britain’s economic struggles.

The nation’s economy remains under pressure, battered by stagnating growth, rising inflation, and public discontent. Reeves, who has been at the forefront of Labour’s economic policies, faces increasing scrutiny over her strategies, with murmurs of a political reckoning on the horizon.

Globally, the situation is equally precarious. In 2024, geopolitical factors dominated headlines but proved less disruptive than feared. Access to vital shipping routes like the Red Sea was restricted, and conflicts in the Middle East escalated, yet global supply chains largely held, and oil prices surprisingly fell.

The looming return of Donald Trump to the White House in 2025 adds another layer of unpredictability. Expectations of a US-brokered peace deal between Russia and Ukraine bring hopes for human relief but limited economic impact. Western nations are unlikely to rekindle close ties with Russia, dimming prospects of a significant energy price drop. Conversely, any potential US-Iran conflict might drive oil prices higher, though increased production from Saudi Arabia and the US could stabilise markets.

The global economy is projected to grow at a modest 3% in 2025, mirroring 2024’s performance. While this is below historical averages, it avoids outright disaster. The US may experience a slowdown, partly due to Trump’s trade policies. China’s growth could taper in the latter half of the year but will likely defy doomsday predictions of economic collapse. Meanwhile, India is poised to claim the title of the fastest-growing major economy, symbolising its rising global economic influence.

Domestically, however, Reeves faces growing criticism as the UK struggles to deliver robust growth. Critics argue that Labour’s fiscal policies lack the boldness needed to address long-term challenges. Starmer, under pressure to maintain his leadership credibility, might be tempted to shift the blame for economic shortcomings onto his Chancellor.

For now, the economic storm brews quietly, but 2025 could be a defining year for both Rachel Reeves and Keir Starmer’s leadership. With global factors offering little relief, the Prime Minister might find it politically expedient to make his Chancellor the fall person for Britain’s deepening economic woes.