Prime Minister Steps In as Chancellor Faces Mounting Pressure
Prime Minister Keir Starmer has announced he will personally intervene in the cost of living crisis this week in a dramatic attempt to rescue his government's Budget following the escalating controversy surrounding Chancellor Rachel Reeves.
The intervention comes as Reeves faces accusations of misleading the public and financial markets after the Treasury's independent watchdog, the Office for Budget Responsibility, revealed it had informed her months ago that there was no black hole in the public finances - directly contradicting her claims of a £30 billion shortfall.
OBR Revelation Sparks Political Firestorm
On Friday, the OBR dropped a political bombshell when it disclosed that it had actually told the Treasury weeks ago that the nation's finances showed a £4.2 billion surplus, rather than the massive deficit the Chancellor had repeatedly cited to justify what she called "hard choices" in her Budget.
Downing Street sources confirmed on Saturday night that Sir Keir Starmer had been aware of the true economic situation when Ms Reeves delivered her Budget speech warning of difficult decisions ahead. When questioned about whether the Prime Minister knew the OBR had presented a much rosier economic picture, a Number 10 spokesperson stated: "The Prime Minister and Chancellor worked together on the Budget, which made fair and necessary choices."
The Conservative opposition has now reported Chancellor Reeves to the financial watchdog over what they describe as "misleading" statements, while Reform UK leader Nigel Farage declared: "We have a deceitful Prime Minister and Chancellor and both should go. Business has no confidence left in these two."
Starmer's Pivot to Growth Agenda
According to reports from The Times, the Prime Minister is now attempting to shift the political conversation by focusing on his long-term growth plans. In a scheduled speech on Monday, Starmer is expected to praise the Budget for providing "economic stability" and claim that "economic growth is beating the forecasts."
In what appears to be a strategic repositioning, Starmer will vow to scrap what he terms "misguided" regulations and address unforeseen costs to businesses. The speech will also confirm reforms to the construction of nuclear power plants, following revelations that Britain has become the most expensive place in the world to build nuclear facilities.
Additionally, Business Secretary Peter Kyle will announce a deregulatory approach to all large infrastructure projects in a bid to accelerate delivery times across the country.
Mounting Calls for Chancellor's Resignation
The Prime Minister's rescue mission unfolds against a backdrop of intensifying pressure on his Chancellor. The Conservatives have launched a public petition demanding Rachel Reeves be sacked, while a Mail on Sunday poll found that 68% of voters believe she should resign, compared to just 32% who think she should remain in office.
Tory leader Kemi Badenoch delivered a scathing assessment, telling the MoS: "She seems to think she can create her own alternative reality and that people will just buy it. That's what I was alluding to in my Budget speech when I said she's taking the public for fools."
Badenoch added: "We learn now the OBR actually told her, 'You don't necessarily need to do this.' And she did it anyway. That is dishonest. That is yet another example of this woman being out of her depth, and in the wrong job."
Labour MPs Express Fury and Concern
Even within Labour ranks, frustration is mounting. Former minister Graham Stringer stated bluntly: "Under similar circumstances, no Chancellor would expect to remain in office. To do so, Rachel Reeves has a lot of explaining to do, to MPs and the public."
Stringer insisted that if Parliament demands answers through an urgent question on Monday, "the Chancellor herself must come to the House – not take the coward's way out and send one of her underlings instead."
Another Labour MP revealed the depth of anger among colleagues who had been "marched up a hill" to defend the possibility of a manifesto-breaking income tax rise, only for the Chancellor to abandon the plan after it had been widely leaked before the Budget.
The MP accused Reeves of lying about the fiscal black hole, noting that "the OBR said it did not exist." However, the same MP suggested the Chancellor would likely survive the crisis because "if she goes, Keir goes," indicating the Prime Minister's political fate is tightly bound to his Chancellor.
Broader Political Fallout
Shadow Chancellor Mel Stride has requested the Financial Conduct Authority launch a full investigation "into possible market abuse by all those who would have had access to confidential information including at HM Treasury and 10 Downing Street" on grounds that markets could have been manipulated by knowingly false statements.
Meanwhile, a Treasury minister reportedly hinted that the government had "big plans" for the OBR next year, suggesting possible retaliation against the watchdog for revealing its private advice to the Chancellor.
The MoS survey, conducted by Find Out Now with 2,002 British adults on November 29, also found that 65% of voters believe the Labour government will fall before the end of its five-year term in 2029, indicating significant damage to public confidence in the administration.
In a separate poll on the Daily Mail website, an overwhelming 97% of the 87,541 respondents called for Ms Reeves to resign, demonstrating the intensity of public anger over the handling of the nation's finances.
