In business, in politics, and in life, we will all be charged at some point with the unhappy task of delivering bad news. Knowing this, spare a thought for Rachel Reeves.
Due next week, this chancellor’s first fiscal event has been years in the planning. Under normal circumstances this time to prepare would allow the establishment of credibility and message discipline. Not so here.
With money tight and cuts inevitable, it was never going to be pretty. However, before it is even announced, this budget is a case study in bad news delivered badly. Reeves has boxed her herself in, promising this won’t be an austerity budget, that it will provide a platform for business, that there will no rises in income tax, national insurance or VAT, while simultaneously complaining she has a £22 billion black hole to fill.
This budget communication, therefore, merits our attention. Because whether it’s a round of redundancies or a poor quarter’s performance, any business - even the most vibrant and successful - can falter. For those tasked with communicating the ups and downs, here are four tips for delivering bad news.
Timing is key: If you have bad news, maybe take all your trash out at once? Reeves announced the cut to the winter fuel payment three months ago, then left a vacuum with nothing to fill it. Instead, Ofgem delivered its heavily trailed hike in the energy price cap days later and opposition politicians and campaigners had a field day.
Making the tough calls early - as Starbucks’ new CEO Brian Niccol did this week - can signal a command of your own destiny, but your timing has to be sensible. The three month gap between Reeves energy bombshell and her budget announcement was not. Choose your timing wisely.
Keep your internal audience on side: When delivering bad news, you need employees or managers who understand why and can underline your message. Instead, Reeves cuts a lone figure in the Commons with MPscomplaining to the PM over her head.
Disciplined front? Not so much. The cabinet psychodrama is red meat to a press corps reared on Tory chaos. Take note before you allow your budget cuts to break out into the open.
Call in the professionals: Sue Gray’s command of the No10 communications grid has raised eyebrows. For all her strengths, Gray had a huge brief and was no comms expert. Veteran journalist James Lyons replacing her in that function is a promising sign, but it came too late to right the course ahead of 30 October. The whole episode is a lesson in having the right people in place from the start.
Always look on the bright side: Coming good in a crisis means keeping one eye on the future. The best leaders use these perilous moments to bring people together, to inspire them and articulate their vision. Starmer has singularly failed in this respect.
Instead, this government has become hooked on a cycle of ‘doom and gloom’ messaging that has spooked investors and depressed the rest of us, including those ready and willing to invest in a Labour vision.
Starmer and Reeves rose to power on the promise of a big plan. “Trust us” they proclaimed, and the electorate, tentatively, did. If the polls are any indication, many are already regretting their choice.
This government’s obvious deficits - it’s obscure strategy, confused messaging and operational chaos - have diminished its standing. Rather than a clean break from the past, we are left with more of the same, and little goodwill for this chancellor. She has been left to carry the can.
The greatest lesson? Commanding the narrative is impossible without trust. Cultivate competence, invest in your reputation, and reap the rewards in the tough times.