PM's lack of endorsement raises concerns
Sir Keir Starmer has declined to confirm that Rachel Reeves will still be Chancellor at the next election, causing uncertainty amid public criticism from big business in the face of ongoing market upheaval and rising borrowing costs. Despite expressing confidence in his team, the PM refrained from guaranteeing Reeves' position until the end of the current Parliament.
Business leaders turn on Reeves
Downing Street previously indicated that Foreign Secretary David Lammy would maintain his position throughout the Parliament, contrasting with the ambiguity surrounding Reeves. Shadow Treasury Minister Gareth Davies remarked that Labour's attempts to downplay the situation were futile, emphasizing Starmer's repeated refusal to assure Reeves' continuity as Chancellor.
Market turmoil and backlash
Reeves has faced criticism from business figures following the tax changes announced in the Budget, with CBI chief Rupert Soames voicing concerns about the impact on business confidence. Additionally, Manchester United owner Sir Jim Ratcliffe condemned government plans, warning of the detrimental effects on the UK chemicals industry.
Financial pressure intensifies
Government borrowing costs surged to multi-decade highs, leading to a decline in the pound against the US dollar. The yields on UK Government bonds, or gilts, reached levels not seen since 2008, further heightening economic uncertainty.
