Starmer finally bolsters Reeves after her tears in the Commons spook markets
Starmer backs Reeves, adding Commons tears ‘nothing to do with politics’
- Rachel Reeves, the Chancellor, appeared visibly upset during a chaotic PMQs session, which unsettled financial markets and led to a drop in the pound's value.
- Prime Minister Sir Keir Starmer publicly backed Ms Reeves, stating she would remain in her post and attributing her emotional state to a personal matter, though ministers later suggested an altercation with the Speaker.
- The incident occurred amidst pressure on the prime minister over a £5bn financial black hole resulting from a welfare benefit cuts U-turn.
- The bond markets reacted negatively, with gilt yields rising and the pound falling, while Labour backbenchers renewed calls for a wealth tax to address the fiscal gap.
- Financial experts expressed concern that reliance on tax rises to cover spending could lead to a death spiral of growth destruction and potentially another fiscal crisis for the UK.