Tory big beast Ken Clarke praises Rachel Reeves’s ‘responsible’ economics in coup for Labour

Tory big beast Ken Clarke has thrown his weight behind Rachel Reeves, praising her “responsible” approach to public finances.

In the latest significant boost for the Labour shadow chancellor, Lord Clarke, who served as chancellor under John Major and was health secretary in Margaret Thatcher’s government, said he had been impressed by Ms Reeves.

But, stopping short of full backing for Labour, he said: “It’s her party that worries me”. Lord Clarke added: “If it was Jeremy Hunt and Rachel Reeves, then I don’t think either of the parties would worry me very much.”

It comes just weeks after the former governor of the Bank of England endorsed the Labour Party in a major coup for Sir Keir Starmer and his shadow chancellor. Mark Carney said it was “beyond time” for Ms Reeves to run the economy in a Labour government.

Mr Carney, the 58-year-old who was handpicked by former Tory chancellor George Osborne to be governor, stunned the Labour conference last month with a video address saying: “Rachel Reeves is a serious economist. She began her career at the Bank of England, so she understands the big picture. But, crucially, she understands the economics of work, of place and family. It is beyond time we put her energy and ideas into action.”

Both endorsements come as major donors and business leaders have returned to the Labour fold under Sir Keir and Ms Reeves, having shunned the party under former leader Jeremy Corbyn.

Speaking to the i newspaper’s Labour’s Plan For Power podcast about Ms Reeves and Mr Hunt, Lord Clarke said: “I don’t think they disagree on very much. They do, of course, politically, I do myself disagree with some of Rachel’s political views, I’m sure.

“But her actual approach, a responsible approach to macroeconomic policy, matches the responsible approach to macroeconomic policy that Jeremy Hunt has which, in the present shambles of British and international politics and the dangers of it, I find rather reassuring – about the only thing I do find reassuring about this election that’s coming up.”

Lord Clarke also warned she would face “a lot of tough, unpopular decisions” if Labour wins power, because “we’re not going to get out of our present financial crisis for at least two or three years”.

Labour grandee Lord Mandelson also threw his weight behind Ms Reeves, saying: “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.”

And elsewhere in the podcast, Lord Clarke said Tory demands for tax cuts and a cabinet reshuffle are “daft” and “neither of them will do any good in the sense of winning votes”.

The former chancellor said it was “absurd” to suggest a reshuffle of his top team could turn Rishi Sunak’s fortunes around.