A couple of weeks ago, the Chancellor, Rachel Reeves, announced a series of spending cuts across many government departments, whilst at the same time committing additional funds to others. It sounded quite severe in some areas.

A few years ago the Chancellor’s statement would have been coupled with comments about austerity. Interestingly, there was only passing mention of that this time around.

The Chancellor is the finance director of the nation’s biggest business – the country itself. She is in some ways a protected species, as the people who ultimately determine whether she keeps her job – the voters – are another four years away from being able to issue her with a P45. Maybe as a result she doesn’t quite have the incentive to make the changes that are potentially needed.

The current government has gone to great lengths to tell us that the country is in a difficult financial position and that they have plans to fix it without increasing their major income source – taxation of working people – because that’s what Reeves promised when she got the job. She’s also promised not to increase borrowing for current expenditure budgets. So, what should she do?

Do the cuts go far enough?

The logical answer to many finance directors would be to make more swingeing cuts in costs and we’re therefore left wondering whether the Chancellor’s cuts go far enough. Those departments who have received more money will have to find salary increases out of their enhanced budgets, so will that be achievable against a backdrop of some of the claims being demanded in certain sectors?

Alongside strong management of costs comes the need to generate income. Raising taxation seems to be out in terms of mainstream levies on working people, but maybe the Chancellor will eventually backtrack on this promise out of having no choice.

Perhaps the solution lies in driving prosperity through business? Those self-same taxpayers who have been told to increase their contribution to the national insurance take, are at the same time being warned they will need to pay more to government if their businesses are sold or if the next generation wants to continue the business. It doesn’t instantly smell of success.

Don’t get me wrong, this isn’t a comment on the colour of politics and I wouldn’t want Reeves’ job, but you have to wonder whether the government is being very business-like in its dealing with business. We’ll just have to wait and see, I guess.