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Starmer Declines to Confirm Reeves Will Stay as UK Chancellor

  • During PMQs on Wednesday, Rachel Reeves was visibly tearful on the Commons frontbench amid intense exchanges about her future.
  • Following Tuesday’s welfare U-turn, the government reversed reforms, creating a nearly £5 billion shortfall that intensified scrutiny of Reeves’s budget plans.
  • Market volatility surged with government borrowing costs rising and the pound sinking after Badenoch called Reeves a 'human shield' and the Treasury's backing remained uncertain.
  • Downing Street confirmed Reeves is 'going nowhere' amid market fears fueled by Starmer’s refusal to guarantee her position after her tearful Commons appearance.
  • The welfare U-turn tightens fiscal constraints for Reeves ahead of the Autumn Budget, with the IFS warning that tax hikes are increasingly probable under current spending limits.
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iNews broke the news in London, United Kingdom on Wednesday, July 2, 2025.
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