UK (Parliament Politics Magazine) – Prime Minister Keir Starmer avoided questions on whether Rachel Reeves will remain Chancellor after the next election amid growing concerns over the stalled economy.
Chancellor Rachel Reeves is facing intense criticism for her handling of the economy and public spending amid rising borrowing costs.
When questioned if Rachel Reeves would stay in her role for the full parliament, Sir Keir Starmer expressed his full confidence in her economic policies.
He said,
“She was given an incredibly challenging task at the Budget because not only was the economy broken, but we also had a 20 billion-pound black hole and many, many things that had been identified for spending but didn’t have any spending attached to them.”
Keir Starmer uncertain about Rachel Reeves’ future
Following a speech on artificial intelligence, Sir Keir Starmer dodged a direct question “Yes or No” about Ms. Rachel.
The PM’s refusal has sparked speculation in Westminster, like the promise Number 10 made about foreign secretary David Lammy.
Mr Starmer insisted he never claimed the economy would recover swiftly after 14 years of Conservatives leadership.
Keir Starmer responded to questions about protecting jobs from AI, while the Prime Minister highlighted safeguarding working people. He also reaffirmed his commitment that he would uphold his fiscal rules despite economic pressures.
Conservatives response on Starmer’s silence on Reeves
The Tories said Sir Keir Starmer’s hesitation to guarantee Rachel Reeves’ role as Chancellor in the next election sent a clear message.
The shadow financial secretary, Gareth Davies, stated, “Labour are trying to insist that everything is fine, but the fact that Keir Starmer has repeatedly refused to say whether Rachel Reeves will remain as Chancellor speaks volumes.”
He added that the Prime Minister was trying to blame someone, but Rachel Reeves in Downing Street caused the crisis.
Reform claims Starmer distancing himself from Reeves
The deputy leader of Reform UK, Richard Tice, accused Keir Starmer of attempting to “separate” himself from Rachel Reeves.
He added, “Keir Starmer may now try and distance himself from Rachel Reeves, but the reality is, this is his economic agenda, and this is his choice for Chancellor.”
Kemi Badenoch’s views on the Chancellor’s future
The Tory leader, Kemi Badenoch, argued that Rachel Reeves is barely holding on after the Prime Minister declined to confirm her as the next Chancellor.
She posted on X and said, “The Prime Minister just refused to back his Chancellor staying in her job. Keir Starmer and Rachel Reeves have driven Britain’s economy into the ground.”
The Prime Minister just refused to back his Chancellor staying in her job.
— Kemi Badenoch (@KemiBadenoch) January 13, 2025
Keir Starmer and Rachel Reeves have driven Britain's economy into the ground. The markets are in turmoil and business confidence has crashed, yet the Chancellor is nowhere to be seen.
Labour promised… https://t.co/fG05urhjMy
Chancellor urged to address mortgage concerns
The Prime Minister’s post-speech Q&A, initially centered on AI, was quickly turned to economic turmoil amid ongoing instability. As the pound fell to $1.21, its lowest since November, with borrowing costs rising and oil prices increasing, worries about mortgage rate hikes intensified.
The Liberal Democrats urge Ms Rachel to hold an emergency meeting with lenders to address concerns over mortgages.
While Daisy Cooper, MP, slammed the October budget, saying it “has not worked.”
She said, “Rachel Reeves can no longer sit on her hands as this turmoil threatens to have real consequences for millions of homeowners.”
Rachel Reeve’s China Visit
Chancellor Rachel has recently come back from China after her two-day diplomatic visit.
She expressed her desire to build a long relationship with China, highlighting that agreements made in Beijing would bring £600m to the UK over the next five years.
Her visit to China comes at a time of rising UK borrowing costs and a falling pound, with the Tory claiming she has “fled to China.”
At Brompton’s Beijing store, Reeves stated she had no intention of altering her economic policies.
During her two-day tour of Beijing, Reeves met with Vice-Premier He Lifeng to discuss investment opportunities and trade between the UK and China.
The opposition parties criticized her visit to China, but she completed it despite extreme pressure.
Rachel Reeves is under fire, and critics suggest she’s competing with Liz Truss to become the nation’s economic disaster.