Zürcher Nachrichten - UK govt backs finance minister after tears in parliament

Tears rolled down Reeves's face after Prime Minister Keir Starmer declined to guarantee that she would remain in place until the next general election, likely in 2029.

It came after Starmer's Labour government U-turned over key welfare reforms, wiping out a multibillion-pound boost to public finances and triggering speculation that Reeves could lose her job.

The pound slumped more than one percent against the dollar on Wednesday and London's stock market retreated amid the speculation.

A spokeswoman for Starmer later told reporters that Reeves had his "full backing", while a spokesman for Reeves said she had been upset due to a "personal matter".

"The Chancellor is going nowhere. She has the Prime Minister's full backing," Starmer's press secretary said.

Asked why he had not confirmed faith in Reeves when asked in the House of Commons, she said: "He has done so repeatedly."

"The Chancellor and the Prime Minister are focused entirely on delivering for working people," she added.

Asked about Reeves's tears, her spokesman said: "It's a personal matter, which, as you would expect, we are not going to get into."

"The Chancellor will be working out of Downing Street this afternoon," he said.

Starmer backed down on the welfare plans on Tuesday after a rebellion by MPs from his own party, in a major blow to his authority.

It has also left an almost £5 billion black hole in Reeves's plans, leading to the possibility that she will have to raise taxes on "working people", something that she has repeatedly ruled out.

Reeves has also ruled out tweaking her self-imposed rule that day-to-day spending should be met through tax receipts rather than borrowing.

T.Gerber--NZN