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PM Starmer Reaffirms Full Support for Chancellor Reeves Amid Welfare Bill Turmoil
Amid mounting scrutiny over welfare policy reversals and market turbulence, UK Prime Minister Keir Starmer has extended his full support to Chancellor Rachel Reeves, firmly quashing speculation about her position in the cabinet. The reassurance follows an emotionally charged session in the House of Commons that prompted questions over her future.
Reeves’ Emotional Moment in Parliament Sparks Speculation
Chancellor Rachel Reeves appeared visibly shaken during a recent Prime Minister’s Questions session, prompting concern among MPs and media. Her subdued demeanour, coupled with mounting criticism over Labour’s welfare U-turns, led to rumours about her possible resignation. Financial markets responded swiftly—UK bonds saw their sharpest sell-off since 2022, and the pound dipped in response to perceived fiscal instability.
Starmer Stands Firm Behind Reeves
Downing Street was quick to respond. The Prime Minister’s spokesperson issued a categorical statement: “The Chancellor is going nowhere, she has the Prime Minister’s full backing.” Starmer himself later reiterated on national media that Reeves would be “Chancellor for a very long time to come,” dispelling any rumours of a leadership shake-up.
This public display of unity was seen as critical to restoring investor and public confidence in the government’s economic management.
Reeves Calls It a ‘Personal Moment,’ Vows to Push On
Speaking at an NHS policy event the following day, Reeves addressed her emotional moment by describing it as “a personal matter,” unrelated to professional issues. She underscored her resolve to carry out the chancellorship with discipline and cooperation, stating that she and Starmer are “working in lockstep” to deliver on Labour’s fiscal agenda.
Welfare U-Turns Complicate Budget Math
The Chancellor’s support comes as Labour’s recent U-turns on welfare reform have created a projected fiscal gap of around £5 to £5.5 billion, according to analysts. The climbdown—intended to avert a backbench rebellion—eliminated expected savings, leaving the Treasury with fewer options. Economists now warn that additional taxation or spending cuts may be needed to maintain fiscal credibility.
Key Takeaways
- Rachel Reeves retains full backing from PM Starmer despite welfare controversy.
- Financial markets reacted negatively to perceived uncertainty in Labour’s fiscal direction.
- Reeves affirmed her commitment to budget discipline, calling her Commons moment personal.
- The welfare reversal could strain the UK budget, risking policy rebalancing later in the year.
