Dread of the financial markets is part of the Labour party’s DNA. This primal fear has been passed down the generations. Ramsay MacDonald, Clement Attlee, Harold Wilson and James Callaghan were all battle-scarred from their vain attempts to defend the pound.
Even though the signs point to a big Labour victory at the next election, the mood at the top of the party remains cautious. For months, Rachel Reeves has been on a charm offensive in the City, sending out a message to the bond dealers and currency traders that she will take no risks with the public finances.
