Downing Street has confirmed that Chancellor Rachel Reeves has the prime minister's 'full backing' and is 'going nowhere', following speculation over her position after a tearful moment at Prime Minister's Questions. The prime minister's press secretary stated that Keir Starmer does not need to repeatedly express confidence in Reeves, emphasising that both are focused on delivering for working people.
The confirmation came after Reeves was seen wiping away a tear during exchanges with Conservative leader Kemi Badenoch, who suggested Labour MPs had said the chancellor was 'toast'. The incident sparked a sharp rise in UK government borrowing costs, with the yield on 10-year gilts seeing its biggest daily jump since the Liz Truss era, while the pound also slumped.
Meanwhile, senior minister Pat McFadden acknowledged there would be 'a cost' to the government's climbdown on welfare changes at the budget, as a leading fiscal thinktank indicated new tax rises appear increasingly likely. The government avoided a parliamentary defeat on its main welfare bill only by removing a central element, raising questions about the impact on public finances.
In other political developments, Reform UK has hired former Conservative MP Anne Marie Morris, who was suspended in 2017 for using a racial slur, to lead its social care policy. The Green Party leadership contest has narrowed to a two-way battle between MPs Adrian Ramsay and Ellie Chowns versus deputy leader Zack Polanski.
Former cabinet secretary Simon Case described Chinese leader Xi Jinping as a 'dictator' and said Donald Trump had put 'helpful pressure' on Europe to increase defence spending. Separately, former health secretary Matt Hancock told the UK Covid-19 inquiry that discharging untested patients to care homes during the pandemic was the 'least worst decision'.
