STORY
Rachel Reeves’ allies have begun making the case for her to remain Chancellor if Labour changes leader, according to reports. The Guardian said supporters of Reeves were arguing that she would be the best figure to maintain market confidence and protect the Government’s economic credibility during a period of political instability.
The intervention comes amid continuing speculation about Keir Starmer’s future and the possibility of a leadership contest. Reeves has faced criticism from within Labour over fiscal policy, but her supporters point to improved IMF growth forecasts, recent falls in inflation and the Government’s cost of living measures as evidence that her approach is producing results.
The Chancellor’s position is likely to become part of any wider debate about Labour’s direction. Some Labour figures have argued for a more expansive economic programme, while others have warned that any move away from fiscal discipline could unsettle investors and increase pressure on the public finances.