Rachel Reeves received the inflation figures she desperately wanted, but 48 hours too late to save her job. Consumer price inflation fell to 2.6% in June, according to data released this morning, just two days after new Prime Minister Andy Burnham sacked her as chancellor.
Reeves was fired after two years in office, following Burnham's decision to replace her with former defence secretary John Healey. The former chancellor had been a vocal advocate for her own performance, repeatedly claiming to be an inspiration for young girls as the UK's first female chancellor, despite the Conservative Party having already produced three female prime ministers.
Inflation Falls Amid War and Economic Turmoil
Inflation had climbed from 3% in February to 3.3% in March after Donald Trump launched a war on Iran on February 28, which sent oil prices soaring. Crude nearly doubled from $60 a barrel to $118 by late April as Iran blockaded supply routes. Reeves publicly criticised Trump, calling the war a "mistake" and saying: "This is a war that we did not start. It was a war that we did not want."
Despite that, inflation moderated to 2.8% in May as markets hoped for a Middle East peace deal, and now stands at 2.6% – still above the Bank of England's 2% target and expected to rise next month.
Reeves' Economic Record Under Fire
Critics argue that Reeves inherited a tentative recovery from Rishi Sunak's Conservatives but crushed it through constant tax increases and bungling. Her £25 billion "jobs tax" was passed on to consumers via higher prices, driving inflation higher. She left office boasting about her performance, but her credibility was long gone, according to commentators.
Reeves was seen in a Kentish Town pub with former Prime Minister Sir Keir Starmer the day before her sacking, appearing to enjoy herself despite the country's economic struggles.
