Rachel Reeves's first 'move': Britain gets its first female Finance Minister

Rachel Reeves becomes Britain's first female finance minister after the Labour Party's landslide election victory on Friday.

Reeves, born on February 13, 1979, is a former chess champion and an ex-Bank of England economist who joined the party at the age of 16. She became the Labour's finance policy chief in 2021 and then served as the shadow Chancellor of the Exchequer. She has been a member of Parliament for Leeds West from 2010 to 2024. Now, the main question is: what will be her opening 'gambit' in this tricky fiscal situation?

The party has promised investments in health and education and also stressed the need to balance the books. Reeves has emphasised the need for fiscal stability amid public debt nearing 100 per cent of GDP, a level not seen since the 1960s. Reeves said in her opening remarks post-victory, 'And as Chancellor, I will put forward a new charter for budget responsibility, a new fiscal lock guaranteeing in law that any government making permanent and significant tax and spending changes will be subject to an independent forecast from the Office for Budget Responsibility.'

Reeves also criticised previous financial reforms. 'Never again. Never again will we allow a repeat of the devastation that Liz Truss and the Tory party have inflicted upon family finances. Never again will a prime minister or chancellor be allowed to rush through plans that are uncosted, unscrutinised and wholly detached from economic reality,' she said.

Labour Party leader Keir Starmer has been vocal about boosting economic growth and the need for private capital investments. The party has announced reforms in the pensions and savings industry, which could potentially help Britain's businesses. Speculations surround tax reforms. However, analysts at JP Morgan expect the party's policies to be 'neutral' for the sector.

British Pound and Stocks surged on Friday following Labour's victory. But can this growth be sustained as economic realities kick in? Reeves seems confident about the future when she says, 'What people will be asking themselves at the next election is this - are me and my family better off with a Conservative government? And the answer is no.'