Keir Starmer has thrown his weight behind Chancellor Rachel Reeves, saying she’s “doing a fantastic job”.
The Prime Minister hit back at questions about her future amid mounting economic turmoil. Today, the pound slumped to its lowest value against the US dollar since November 2023 while Government borrowing costs continued to rise.
Borrowing costs have been rising around the world – not helped by fears over Donald Trump’s threats of a trade war – but critics have questioned whether measures in the Budget have left the UK particularly exposed. Experts have warned the turbulence could mean Ms Reeves could be forced to make spending cuts or further tax hikes to stay within her strict fiscal rules.
Mr Starmer faced down questions about the economy after delivering a speech about artificial intelligence in Stratford. He said he was “completely confident in my team” when asked whether she would stay as Chancellor until the next election. Pressed again on whether she would still be in post, he said: “Rachel Reeves is doing a fantastic job. She has my full confidence. She has the full confidence of the entire party.”
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Keir Starmer faced questions about the economy and the Chancellor after a major speech on artificial intelligence
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Image:
POOL/AFP via Getty Images)
Answering questions about the economy, he said: “We’re going to stick to the fiscal rules. That is a very important thing that we’ve said throughout. We set out those fiscal rules very early on in the day because we knew that the missing ingredient in recent years has been economic stability, we’re determined to bring about that economic stability, and that’s why the fiscal rules are absolutely central to what we do.”
He said changes to planning rules, the industrial strategy and embracing artificial intelligence would fuel growth. He said: “That is why I’m confident in our mission for growth and I’m confident, completely confident in my team.”
But the PM added: “We never pretended, nor would anybody sensibly argue, that after 14 years of failure, you can turn around our economy and our public services before Christmas. Before the election, I said it’s not going to be possible to do this in six months. It’s going to take time.”
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Mr Starmer insisted the Chancellor was taking the right approach to public spending amid warnings she could be forced to rip up plans if economic turmoil wipes out her room for manoeuvre. The Treasury has reportedly told ministers to be ruthless in their approach to public spending, despite the PM and the Chancellor’s promises not to inflict further austerity on struggling public services.
“Yes, we will be ruthless, as we have been ruthless in the decisions that we’ve taken so far,” he said.
“We have got clear fiscal rules, and we are going to keep to those fiscal rules, and that’s why the Chancellor was absolutely right in the words that she chose to describe the approach that we will take.”
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