UK PM Starmer Supports Reeves Amid Budget U-Turn Criticism
UK Prime Minister Kier Starmer has publicly reaffirmed his support for Chancellor Rachel Reeves following a period of intense scrutiny. This comes after Reeves appeared emotional in the House of Commons, sparking speculation about her future in the role. Downing Street has clarified that Reeves enjoys the full confidence of the Prime Minister.
Speculation and Market Reaction
The situation unfolded after Starmer declined to confirm Reeves would remain Chancellor until the next election during Prime Minister's Questions. Reeves' visible distress fueled market uncertainty, leading to a decline in the pound and increased government borrowing costs.
Political Fallout
Conservative leader Kemi Badenoch sharply criticized the government's welfare reform U-turn, suggesting it would undermine Reeves' budget. Badenoch questioned Reeves' ability to hold her position, accusing her of being a "human shield" for the Prime Minister's perceived incompetence. The Prime Minister defended the welfare reform bill, citing its potential to help people return to work and blaming Tory "stagnation" for the issues it addresses. The reform was also criticized for being a watered-down version.
Rebellion and Impact on Savings
Starmer's decision to scrap key parts of the reform to avoid a backbench rebellion further complicated matters, potentially jeopardizing the savings Reeves needed for her fiscal goals.
Personal Matter and Support
Following the tense exchanges, Reeves' spokesperson attributed her emotional state to a "personal matter," while her sister, Labour MP Ellie Reeves, offered visible support. Badenoch's spokesperson dismissed the explanation without further details.
