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Starmer Declines to Confirm Reeves Will Stay as UK Chancellor

  • Prime Minister Keir Starmer declined to confirm that Chancellor Rachel Reeves will stay in her role through to the next election following setbacks in welfare reform plans.
  • This followed Starmer's earlier statement in January that Reeves would stay, but he sidestepped renewed questions amid growing speculation about a nearly £5 billion shortfall after scrapped welfare policies.
  • Chancellor Reeves appeared emotional during Prime Minister's Questions, drawing criticism from Tory leader Kemi Badenoch who described her as looking 'absolutely miserable' and a 'human shield' for government failures.
  • The welfare reforms aimed to plug financial gaps left by the previous Conservative government, but last-minute concessions created a new £5 billion budget gap raising concerns over possible tax rises to balance the books.
  • These developments suggest continuing internal party tension and public uncertainty over economic strategy as Starmer's administration faces pressure to justify reforms and stabilize finances.
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iNews broke the news in London, United Kingdom on Wednesday, July 2, 2025.
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