The Power of ‘Why’: Lessons in Change Communications from Rachel Reeves’ Budget 

Rachel Reeves’ November budget announcement has resembled many firms’ worst nightmare when it comes to delivering a change programme. Leaks, confusion and countless publicly upset stakeholders – the announcement bears all the hallmarks of a PR disaster. While delivering change is never easy, Reeves’ recent communication strategy, or lack thereof, offers a useful example of precisely how not to deliver a change process. 

The power of ‘why’ 

Reeves has repeatedly emphasised her top three priorities, both in speeches and on social media, making it clear that she intends to cut NHS waiting lists, reduce national debt and borrowing levels, and decrease the cost of living. However, as much as she has laboured these points, she has yet to provide the British public with a tangible vision of the idealised future that will be achieved if her policies are implemented. When announcing her budget in the House of Commons, Reeves simply said “today, I am asking everyone to make a contribution”, leaving the British public still wondering a contribution to what? 

• Without a clear explanation of why sacrifices, such as paying higher taxes, are necessary, stakeholders are left unconvinced and, worse, upset by change strategies that they feel negatively impact them.  

• Change programmes that harm some stakeholders in the short term can still be effectively communicated and widely supported but only if the long-term benefits brought about as a result of these short-term costs are clearly outlined. 

• Reeves’ rhetoric of a “promise of change” was repeated throughout the build up to the budget but never substantiated. This level of ambiguity causes speculation and concern amongst stakeholders. 

Engaging stakeholders effectively 

School leaders, high-value homeowners, and many taxpayers were left feeling ignored as Reeves announced a series of fiscal policies that would ultimately result in them paying the price for increased welfare expenditure. Reeves’ communication style amplified stakeholder frustration, leaving many feeling overlooked and undervalued. 

• In change communications, it is not always possible to consult all stakeholders before an announcement is made, especially if the matter is a confidential one. It is crucial, nonetheless, to make sure stakeholders feel valued and that they have been carefully considered when the announcement of the change programme is made.  

• Tailored communications, engagement of key figures where possible, and providing impacted parties with opportunities to discuss the change programme and ask any questions they may have are all vital to effectively engaging stakeholders and building buy in. 

Anticipating emotion 

Policy changes are never just technical and even stakeholders who will ultimately benefit as a result of the changes may feel initially blindsided or upset following an announcement. Reeves’ fiscal policies will certainly impact government spending, but more concerningly for millions of stakeholders, they will directly affect their everyday lifestyles, confidence, and opportunities. Reeves’ strategy failed to anticipate the enormous emotional response her change programme would cause, further wounding stakeholder confidence. 

• Effective communicators anticipate emotional responses and proactively acknowledge them. 

• Facilitating two-way communication channels helps stakeholders process change and feel heard. 

• Ignoring emotion risks escalating resistance and eroding trust. 

The impact of personality 

Reeves raised concerns about misogyny in public life, but critics have argued she confused legitimate political criticisms for sexism. This debate highlights the intertwined nature of personality and policy during such high stakes scenarios. While it is undeniable that some leaders will face heightened scrutiny when announcing a change programme due to prejudices and factors entirely beyond their control, presenting oneself in an appropriate manner is a crucial component of any announcement process.   

• Change programmes succeed when leaders embody collective responsibility, presenting themselves as acting entirely on behalf of the stakeholders they serve, unmotivated by personal interest. 

• Leaders must balance authenticity with humility to maintain credibility. 

Conclusion 

While certainly not helped by a series of leaks, one of which happened only 30 minutes before Reeves was set to announce her budget, the entire announcement process lacked the sensitivity, stakeholder engagement and, most crucially, clear purpose necessary to effectively inspire stakeholder buy in. The lesson is clear: successful change programmes depend not only on policy but on the story told about them.