People have been saving more, thanks to pay growth and cooling inflation, but they will need to feel the benefits | Richard Partington

Labour's critics, however, are circling. It's clear that the government has dented economic confidence, and has a job on its hands to rekindle animal spirits after a dour first five months in charge. Surveys of business and consumer confidence show the chancellor's pitch-rolling ahead of her autumn budget contributed to weaker spending and investment, at a time when Labour focused mostly on hammering the Tories for leaving a dire economic inheritance.

Aiming to regain the initiative, the chancellor, Rachel Reeves is preparing to give a speech early in the new year. With a pivotal spending review looming by late spring, the chancellor is expected to say that Labour has stabilised the economy and can now shift to focusing on the delivery of its manifesto pledges.

You have to reflect on how winter fuel payments was handled, glasses gate and all the rest of it, says one senior figure in Labour circles. This is partly what happens when you've been in opposition for 14 years, you have to learn government as you go along.

The narrative that Reeves has crashed the economy in the process is dramatically overblown. Britain's recent poor run of economic data largely relates to the period before the chancellor took office.

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