A look at the rhetoric, PR, key messages and even the ‘four Ps”
After almost 15 years since a Labour Government delivered a budget, chancellor of the exchequer Rachel Reeves had a somewhat tricky course to navigate, even before she got the chance to address the nation, and the baying bench opposite.
Prime Minister Keir Starmer had already warned it would be “painful”; the threat of £40 billion in tax hikes and spending cuts was only out column-inched by his controversial definition of what a “working person” is.
The PR machine that helped secure a landslide general election victory was in dire need of oiling, with Rt. Hon. Reeves, the UK’s first ever female chancellor, tasked with applying lube to its cranking gears.
How did she get on in her first big gig?
It was a commanding performance, delivered with conviction. The body language was positive, with no ‘tells’ to note and the speechwriter will be delighted that the tone and delivery was assured.
And, like any great story, was delivered in the classic three act structure – set up, confrontation and resolution.
The set up
Key messages were evident in their abundance and repetition. In using the set up to lay the blame clearly at the Tory door, Reeves took delight in referring to the £22 billion “black hole” while countering it with a need to “restore economic credibility”.
It was almost a nod to David Lloyd George’s ‘people’s budget’ of 1909, with a promise that working people will not pay higher taxes at the pub, pump or payslip, but was also a warning that difficult decisions have been made.
The chancellor even found time for some self promotion, in reminding everyone that she was the UK’s first ever woman to deliver a budget, and that young women of Britain should have “no ceiling” on their ambition.
The confrontation
The £40 billion tax hike came. It could not hide behind any spin, and like all good crisis management, seemed transparent – helped by the fact that it was required to fill that “inherited” “black hole”.
Much will be funded by a rise in employer’s national insurance contributions, and to end ‘short termism’ the new “seven pillars for growth strategy”, and two rules on “stability & investment” were announced.
The resolution
Here’s where the rhetoric really kicked in. Pledges were made to those affected by the infected blood and Post Office scandals, the NHS and our schools will be fixed, more affordable housing, a crackdown on welfare fraud and shoplifting, confirmation of the appointment of a “Covid corruption commissioner”, increases in real living wage, but also increases in stamp duty on second homes and private jet duties. Finally, the promise to restore stability to public finances, protect working people and, of course, to “rebuild Britain”.
The four Ps
Well, this is a marketing blog, after all. The working people of Britain will not pay higher taxes at the forecourt pump, or in their payslips, potholes will be addressed and by far the loudest, most raucous cheer of the day came when it was announced that changes in draught beer duties meant we’d all be paying a “penny less for a pint”.
Impact upon businesses and the West Midlands
The chancellor was adamant that “difficult decisions had to be made” to enable a change for good, or as we heard again, “economic stability.” While, as a small business in the creative industry, working with predominantly SMEs to help deliver their growth, there’s a slight tinge in that we will all be hit by the NI hike for employers. But, could these promises be kept had these measures not been taken? And should we all be buoyed by the investments in infrastructure and entrepreneurialism to bolster an economy and drive growth that the creative industry will support?
Time will tell on this UK Autumn Budget 2024, and as a digital marketing agency proud to be operating out of Birmingham, it was pleasing to see that along with Greater Manchester, the West Midlands will be the first mayoral authorities to receive integrated settlements from next year, “giving mayors meaningful control of the funding for their local areas”.
In summary, a well delivered speech, great use of key messaging, the gears on the PR machine may have just started churning back to life (and we also got our four Ps).