Prime Minister Sir Keir Starmer has mounted a robust defence of his Chancellor, Rachel Reeves, following a storm of criticism over last week's Budget. Ms Reeves faces allegations of misleading the public and markets to justify significant tax increases.
Defending the Chancellor's Position
Speaking on Monday, 1 December 2025, Sir Keir is set to argue that Ms Reeves' actions were necessary to provide economic stability. He will contend that her decisions have raised billions of pounds, creating vital "headroom" for the nation's finances. This defence comes after a contentious revelation from the Office for Budget Responsibility (OBR).
It has emerged that, prior to her Budget speech, the independent fiscal watchdog informed the Chancellor that the state of the public finances was markedly better than previously thought. Contrary to expectations of a deficit, the OBR indicated Ms Reeves was actually dealing with a surplus of £4.2 billion. Critics allege this information was withheld to bolster the case for her £26 billion package of tax hikes.
Welfare Reform on the Agenda
Alongside addressing the controversy, the Prime Minister is expected to pivot to the government's plans for welfare reform. Sir Keir will frame the current system as one that is "trapping people, not just in poverty, but out of work." He will argue that perverse incentives, particularly those affecting young people, must be removed as they are costing the country millions and undermining productivity.
"We must reform the welfare state itself – that is what renewal demands," Sir Keir will say. "Now, this is not about propping up a broken status quo. No, this is about potential."
Reeves Denies Misleading Claims
At the heart of the political row is the accusation that the Chancellor knowingly used outdated or inaccurate economic forecasts. Ms Reeves has strongly denied lying to the public or the financial markets. The Prime Minister's intervention is seen as a crucial move to shore up her authority and present a united front amidst the scrutiny.
The fallout from the Budget continues to dominate Westminster, with the opposition likely to intensify its calls for transparency. The government's dual focus—defending its fiscal strategy while announcing a major overhaul of welfare—signals its attempt to control the narrative and move the conversation towards its long-term policy goals.
