UK (Parliament Politics Magazine) – UK PM Sir Keir Starmer insists his relationship with Chancellor Rachel Reeves remains strong after a No 10 economic reshuffle, amid a falling pound.
As reported by The Telegraph, Keir Starmer claims he maintains stronger ties with Rachel Reeves, even after a reset widely seen as undermining the Chancellor.
The pound dropped sharply, increasing pressure on the Prime Minister to outline his economic strategy ahead of October’s Budget.
Prime Minister’s Spokesman’s views on the ties with Rachel Reeves after Number 10’s reshuffle
When asked about the reshuffle’s impact on the Chancellor’s authority, the Prime Minister’s spokesman said,
“No, and as I say it reflects a strengthening of the relationship between the Prime Minister and the Chancellor, a determination to drive growth in the economy, a recommitment to our robust fiscal rules.”
He stated,
“And obviously we said yesterday how the appointment of the Chief Secretary to the Prime Minister, he’s someone who has been involved in the work to stabilise the economy, invest in public services and an approach to the economy that drives inflation, drives borrowing down and that’s the best response to grow the economy.”
The spokesperson said,
“The Prime Minister and the Chancellor want the strongest possible team on the pitch to drive economic growth.”
The Prime Minister’s spokesman affirmed an “iron-clad” pledge to fiscal rules introduced by Ms Reeves, stating that Keir Starmer and Rachel Reeves are aligned on policy.
Prime Minister’s spokesman’s stance on the pound’s fall and the Government’s fiscal strategy
Referring to the pound fall, the PM’s spokesman said,
“Obviously, we wouldn’t comment on any specific market movements, but our iron-clad commitment to our robust fiscal rules remains.”
He stated,
“You’ll have seen since this Government took office that we have taken the necessary decisions to stabilise the public finances, drive growth.”
The spokesman added,
“The Prime Minister and the Chancellor have been speaking over the summer about how we turbocharge delivery, and that includes the growth agenda. Only by growing the economy can we fund good services and drive the rise in living standards we’ve committed to delivering.”
What did the Prime Minister say about plans to tackle illegal migration?
Sir Keir Starmer will convene ministers today to address issues surrounding illegal immigration.
The Prime Minister’s official spokesman stated,
“The Prime Minister is chairing a ministerial meeting later today on how to go further and faster to combat illegal migration.”
He said,
“I haven’t got a cast list for it, but it will be across the Cabinet and across the Government. Obviously, when it comes to tackling illegal migration – shutting hotels to addressing the pull factors of illegal working – that’s obviously something that requires a cross-government effort.”
The spokesman added,
“The Prime Minister and ministerial colleagues will discuss how we can speed up the closure of hotels, including using modular buildings on industrial sites and ex-military sites to meet need and provide value for money.”
What did experts and opponents say about the pound’s fall and rising borrowing costs?
The pound dropped 0.6% against the euro to €1.15 on Tuesday, making it the weakest performer among major currencies. The decline in the pound coincided with a rise in borrowing costs, hitting a 27-year high, with 30-year gilt yields reaching 5.69%.
Mel Stride, the Tory shadow chancellor, called on Sir Keir to provide more details on his economic plans.
He stated,
“The markets are getting jittery. Businesses and investors need certainty now – not waiting months until the budget.”
Chris Beauchamp, IG’s chief analyst, said rising borrowing costs “complicate matters for the Government,” hinting that tax hikes may be included in the autumn Budget.
He added,
“Ironically, of course, the situation now seems more ripe for austerity policies than in 2010, but the country as a whole will not take kindly to a government trying to cut spending at a time when so many are feeling the pinch of inflation.”
YouGov poll’s findings about Labour’s standing
According to the recent YouGov poll, Sir Keir Starmer and Labour face grim prospects.
The poll found Reform UK holds a nine-point lead over Labour at 29%, rising slightly from the previous week.
Labour stands at 20%, the Tories at 17%, the Liberal Democrats at 15%, and the Greens at 10%.