Sadiq Khan has launched a scathing attack on Rachel Reeves, accusing the Chancellor of relentlessly “talking down” Britain and helping drive Labour’s disastrous local election losses.
In a remarkable intervention from one of Labour’s most senior figures, Khan warned the Government had lost the ability to sound “hopeful, optimistic and upbeat”, arguing voters had grown tired of what he described as two years of “doom and gloom” messaging from the Treasury.
The criticism comes after Labour suffered heavy losses in last week’s local elections, shedding more than 1,200 council seats and losing control of dozens of authorities across England.
The setbacks were particularly painful in London, where the Green Party of England and Wales captured council seats in traditional Labour strongholds, including Hackney, Lewisham and Waltham Forest, while the Conservative Party regained control of Westminster.
The Liberal Democrats also swept all 54 seats in Richmond upon Thames.
Speaking about Labour’s poor performance, Khan admitted there had been widespread frustration with both Keir Starmer and Reeves.
“There was, without doubt, unhappiness with Keir Starmer, with the Chancellor Rachel Reeves, and with the Labour Government,” he said.
“We should be giving hope.”
In particularly pointed remarks directed at the Chancellor, Khan added:
“This doom and gloom stuff — every time I hear the Chancellor speak, it’s doom and gloom for the last two years.
“People didn’t vote for a Labour Government for more doom and gloom.”
Reeves has repeatedly argued that Labour inherited a severe fiscal crisis from the previous Conservative government, frequently citing what she described as a £22bn “black hole” in the public finances.
However, critics have disputed the scale and presentation of the figure, with opposition parties accusing Labour of using bleak economic messaging to justify tax rises and spending restraint.
Khan suggested the rhetoric was now actively harming Britain’s attractiveness to international investors and businesses.
“What’s bad is talking down our country,” he told the New Statesman.
“What’s bad is not being a great salesperson for this country.”
He warned that negative messaging from the Treasury risked driving entrepreneurs, investors and skilled workers overseas at a time when Britain needed to project confidence and stability.
“We are, inadvertently, from the noise coming from the Treasury, encouraging people to leave this country to go elsewhere. It’s bonkers,” he said.
“We want wealth creators here, we want people who want to live here, we want to encourage people and businesses to come here, and when it’s all doom and gloom, why would you choose to come here?”
Khan also appeared to deepen existing tensions with the Treasury over devolved powers, having previously described Reeves as a “roadblock” to greater autonomy for London.
The intervention will intensify speculation over Labour’s internal divisions as the Government struggles with weak polling, market volatility and mounting criticism over its economic strategy.
It also underlines growing concern within Labour ranks that the party risks appearing managerial and pessimistic at a time when voters are increasingly demanding optimism, growth and tangible improvements in living standards.
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