Rachel Reeves’ strict economic strategy, known as Securonomics, constrains business innovation and threatens to undermine the free market, according to financial analyst Bob Lyddon. He contends that this approach expands government involvement to create a ‘stable, predictable, and secure base’ for private investment, but it consumes vast resources and leaves little space for true market dynamics.
Understanding Securonomics
Bob Lyddon, founder of Lyddon Consulting Services, outlines his concerns in a detailed analysis. He states, ‘Rachel Reeves may appear not to have an economic credo, or to have any idea about how businesses and markets work, or to understand how businesses react to government intervention, high taxation, and high regulation. There is a credo, though, and Reeves’ lack of apparent grip derives from her adherence to it. It is called Securonomics. Labour’s plans spell the death of the free market, of wealth creation, and of economic freedom.’
Introduced in the November 2025 Budget, Securonomics seeks to undo elements of Thatcher-era privatizations without full renationalization. It directs private companies in sectors like energy, water, transport, education, health, and other critical industries to align with government goals through regulations, incentives, and penalties. The oil and gas industries face restrictions, while Net Zero targets dominate priorities.
Massive Investments and State Control
Lyddon’s review highlights the scale of Labour’s proposed £1.64 trillion investment over the next decade, representing 57% of 2024 GDP. Combined with the existing 42% public sector share, this could elevate government influence to nearly 60% of UK economic activity. He notes, ‘The government’s ‘investment’ plans amount to nearly £1.7 trillion (60% of the UK’s 2024 GDP) to be spent on its Net Zero/Clean Energy, Infrastructure, and Industrial strategies over the next 10 years. Public policy objectives – not market opportunities – determine where the money will be spent.’
Such heavy intervention resembles the European Union’s model, which Lyddon views as stagnant. He warns that Labour’s alignment with EU-style policies could position the UK economy similarly, especially as Europe recognizes these shortcomings. Lyddon adds, ‘Reeves’ implementation of Securonomics is the most insidious element in the government’s EU Re-set: it will make the UK’s economy work exactly like the stagnant EU.’
Net Zero Challenges and Global Risks
At the heart of Securonomics lies the Net Zero agenda, aimed at shielding the UK from energy disruptions like those triggered by Russia’s invasion of Ukraine. However, Lyddon points to vulnerabilities, including the ban on new North Sea exploration licenses, which overlooks supply chain risks. Reliance on renewables, he argues, entrenches higher costs.
A recent reports the Institute of Economic Affairs questions the affordability of the Net Zero transition, prompting government responses emphasizing the UK’s potential as a ‘clean energy superpower.’ Lyddon reinforces these doubts, stating, ‘Net Zero, with its huge allocations of money and resources as well as its huge body of regulations, is intrinsic to Securonomics: supposedly ensuring abundant supplies of cheap, home-produced energy as part of our stable, predictable, and secure economic base.’
Global developments add further pressure. With policies under US President Donald Trump boosting domestic oil and gas production, markets could see price drops—propane prices have already fallen 13% from 2024 levels. Nations maintaining fossil fuel reliance may gain trade advantages, disadvantaging high-cost Net Zero adopters like the UK.
Impact on Businesses and Jobs
Lyddon predicts severe consequences, including increased borrowing that displaces private investment and hampers market growth. Recent job market data supports this, showing a sharp decline in vacancies following the Budget—the most significant drop since the pandemic. While the Treasury highlights ‘stability’ and a 25% cap on corporation tax, businesses grapple with escalating costs and regulatory burdens.
He concludes, ‘Spending 6% per annum of current UK GDP for 10 years will bloat the size of the ‘state-directed’ sector of the UK economy to 15-20% of the whole, on top of the 42% that is already the public sector. That results in 60% of all economic activity being controlled by the state. There is no elbow room for a private sector in that economy.’
