Chris Winter

This story below reveals the true extent of Angela Rayner's cluelessness when it comes to economics, the public finances and financial markets. I say that not with glee - but deep alarm and regret. If this is really how the probable next Prime Minister of the UK thinks - betting markets put a more than 50% chance on leadership coup by June - then the ousting of Starmer/Reeves by Rayner (or Miliband) is likely to spark an instant spike in gilt yields, from their already elevated levels. Just the fact that Rayner has said what she has below will put yet more upward pressure on the market-driven borrowing costs – whatever the Bank of England says is these days mere mood – that drive the interest rates faced by firms and households. I have nothing against more social housing – on the contrary, the arguments in favour of building more are at the heart of my book "Home Truths", along with policy mechanisms that could get that done. But if you think that, in the current environment, hard-nosed international creditors do - or even should - give a monkey's about the "social benefits" of subsidised housing then you are utterly and dangerously deluded. Again, I say this in sorrow, not glee. I knew plenty of smart people at the top of successive Blair governments. The architects of New Labour – at least the Blairites – always made sure there were financially literate and market-savvy people in the room when big decisions were made. That was important back then - when the national debt Britain had to service was 35pc of GDP. Now – with the same metric pushing 100pc of GDP and Britain paying more than Morocco to borrow money – it is absolutely vital. It seems that there is no-one – NO-ONE AT ALL – near the top of today's Labour government who has the first clue about the realities of public accounts and global finance. These are – once again – NOT tribal or party-political points, but statements of cold fact ....