Rachel Reeves declares Labour is ‘on the cusp’ of a ‘remarkable’ election victory

Labour is “on the cusp” of a “remarkable” election victory, Shadow Chancellor Rachel Reeves has said in a fresh sign of the growing confidence at the top of the party.

Ms Reeves, a former chess champion, likened the battle with the Conservatives to the latter stages of a board game with Labour “ahead” but playing an opponent “who usually beats you”.

But she was warned by Ed Balls, a former Cabinet minister and ex-shadow chancellor, that Labour must offer optimism going into the polls or it risks failing to win a majority as David Cameron and George Osborne’s Tories did in 2010.

The pair were speaking to i’s new Labour’s Plan for Power podcast as Sir Keir Starmer’s party continues to enjoy near-20 point average poll leads over the Tories.

Ms Reeves said 2019 was “our worst election defeat since 1935”, suggesting Labour had a big task ahead.

She went on: “But yeah, I do feel that we are on the cusp of achieving something remarkable.

“But no vote has been cast. There’s absolutely no complacency.

“You know, I was a chess player in my youth. It’s like being on move 30 of a chess match when you’re a rook ahead, but you’re playing an opponent that usually beats you.

“So we’re doing well… people do see that it is time for change, but we’ve got to seal that deal next year with the electorate.”

Mr Balls, meanwhile, warned Labour against taking too tough a message into the next election despite the dire economic environment.

He said: “When he [Mr Osborne] and David Cameron went out to depress expectation in 2009 to tell people it’s gonna be really hard to start talking about some of the tough things they were going to do.

“I think that that was quite a dent to optimism. It probably stopped them getting a majority in 2010.

“So what you do in advance is really important and that combination of realism and optimism is the sweet spot you’re trying to get to.”

The shadow Chancellor has adopted a strict approach to the public finances as Labour prepares for power, ruling out unfunded rises in day-to-day spending or tax cuts, to the consternation of some in the party.

It has included a decision to water down Labour’s flagship £28bn green prosperity plan due to rising interest rates and the parlous state of the public finances, as Ms Reeves attempts to bulletproof her party’s new-found reputation for economic competence.

Ms Reeves received a major boost after former Tory Chancellor Ken Clarke told the i podcast she would be a “reassuring” manager of the British economy if Labour wins power.

Lord Clarke, who served under Margaret Thatcher, John Major and David Cameron, heaped praise on Reeves’ “responsible” approach to the public finances.

The endorsement is a significant moment as Labour attempts to boost its reputation for economic credibility ahead of the next general election.

Lord Mandelson, the architect of New Labour’s 1997 landslide victory, also told the podcast that Reeves had proved she had what it takes to become chancellor: “She’s even tougher than I thought she was. I mean, I knew she would be a bit of an old boot, but I didn’t realise that she’d be quite as uncompromising in the way in which she develops policy, sees off her detractors and deals with her colleagues on some occasions too.”

Labour’s Plan For Power: The Economy” is the first episode of an exclusive new i podcast series examining what a government led by Sir Keir Starmer would actually do if it wins the next election.

Hosted by Paul Waugh, i‘s chief political commentator, this fascinating four-part series will also dive into Labour’s plans for the NHS, Brexit and the North-South divide.