A member of the Labour leadership has warned that the chancellor needs to use her Budget to restore trust in the party.
Writing exclusively for The Independent, Scottish Labour leader Anas Sarwar said the Budget on Wednesday “is a moment to restore confidence and put this Labour government back on track”.
The intervention comes at a dangerous moment for Labour – less than two days before Rachel Reeves gets on her feet to deliver a make-or-break Budget and six months before a set of elections which could decide Sir Keir Starmer’s future as prime minister.
The elections include those for the Scottish Parliament where Mr Sarwar is hoping to lead Labour back into power against the SNP for the first time since 2007.
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But after winning 37 of the 59 Scottish UK parliament seats last year, Labour has found itself in third place to the incumbent SNP and insurgent Reform UK in the Scottish polls.
Mr Sarwar warned: “Trust is vital in politics. It is the trust of the public that gives a government the authority to legislate.
“And it is the trust of our businesses that will be vital in our drive for economic growth.
“But over recent years, trust has been stretched thin: trust from the public, trust from business, and trust in the ability of political leadership to deliver stability and growth.”
He acknowledged that the rot had start to set in with the previous Tory government.
“We all know the damage done to business trust through the debacle of the process of leaving the EU, Boris Johnson’s ‘F**k business’ attitude and the economically illiterate self-destruction of the Liz Truss Mini-budget.”
However, he added: “If we’re honest the strains of ending that failure have also damaged confidence between Labour and too many businesses.
“That trust will not be rebuilt by slogans or short-term fixes.
“It needs to be earned. It starts with honesty — about priorities, about past failings, and about what the country needs now.”
Mr Sarwar said that the Budget has to set out “Labour values of fairness and action to deal with the cost of living and poverty”.
He added: “We need a budget that tackles poverty, brings down bills, rejects austerity and restores business confidence.
“Without the consumer confidence that comes from families with more money in their pocket to spend growth will remain elusive.
“That is why action on the cost of living is pro-business, but it isn’t enough.”
And at a time when the Office of Budget Responsibility (OBR) is reportedly set to downgrade the UK’s growth forecasts until 2029 hitting Ms Reeves’ Budget plans, Mr Sarwar warned that growth is essential for restoring trust.
Labour came to power in July last year with a “number 1 mission” of boosting economic growth. But since then growth has flatlined and dipped.
Mr Sarwar said: “Without growth, we cannot fund public services, attract investment, or raise living standards. Without growth we cannot end the Tory doom loop and bring prosperity back to people’s pockets.
“Every serious analysis reaches the same conclusion: long-term prosperity demands clarity, predictability, and a government willing to make choices that support enterprise and innovation.
“That means demonstrating integrity — being upfront about what has gone wrong and clear about how it will be put right.”
He raised concerns that business are now having to deal with a sense of even more policy instability.
“Ultimately both voters and businesses will have benefitted from decisions this UK Labour government has made,” he wrote.
“But the tragedy is the failure to project confidence and communicate those changes have left them feeling uncertain.”
