PM takes blame for welfare U-turn as he gives full backing to Chancellor
He said: 'Labour MPs are absolutely vested in this. It matters to them to get things like this right, and we didn't get that process right. We didn't engage in the way that we should have done.'
Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks during Prime Minister's Questions (UK Parliament/PA)
But he insisted his Government would 'come through it stronger' as he vowed to 'reflect' on what needed to be done 'to ensure we don't get into a situation like that again'.
Sir Keir also gave his full support to Chancellor Rachel Reeves after she was seen crying during Prime Minister's Questions on Wednesday.
Ms Reeves's visibly tearful appearance in the Commons came amid speculation that her job was at risk after the welfare U-turn put an almost £5 billion hole in her spending plans.
But the Prime Minister insisted her appearance had 'nothing to do with politics, nothing to do with what's happened this week' and was 'a personal matter'.
Asked if she would remain in her post, he said: 'She will be Chancellor for a very long time to come, because this project that we've been working on to change the Labour Party, to win the election, change the country, that is a project which the Chancellor and I've been working on together.'
Wes Streeting said the Chancellor would bounce back (PA)
On Thursday morning, Health Secretary Wes Streeting said Ms Reeves would 'bounce back' as he praised her 'leadership' on the economy.
He also dismissed a suggestion that Sir Keir himself could be at risk, telling Sky News: 'Keir Starmer has been consistently underestimated.
'I wonder when people will learn. They said he couldn't win the Labour leadership, but he did. They said he couldn't change the Labour Party, but he did. They said he couldn't take the Labour Party from its worst defeat since the 1930s to election victory last year, and he did.
'And now the cynics say he can't change the country, but he will.'
But Conservative shadow chancellor Sir Mel Stride said the scenes in the Commons over the past week had left bond markets 'twitchy' about the Government and 'their ability to actually grip things like spending going forward'.
Appearing on BBC Breakfast, Sir Mel appeared to distance himself from Robert Jenrick, who had earlier posted a video on social media describing Ms Reeves's career as 'dead'.
But he added that Mr Jenrick was making a 'valid' point that the Government had 'lost control of the economy', laying the blame with the Chancellor and Sir Keir and warning of tax rises to come.
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The Guardian
25 minutes ago
- The Guardian
Rachel Reeves says she is ‘cracking on with the job' after Commons tears
Rachel Reeves says she is 'cracking on with the job' of chancellor after being visibly distressed in the Commons the day before, speaking after a public show of unity with Keir Starmer. Reeves unexpectedly joined the prime minister and Wes Streeting, the health secretary, at the launch of the NHS 10-year plan at a health centre in east London, receiving hugs from both colleagues. Her brief speech at the event gave no mention of Wednesday's prime minister's questions, at which she was visibly tearful, with the chancellor talking only about the fiscal foundations of the NHS plan. But, speaking to reporters afterwards, Reeves said the reason for her upset was a personal issue unconnected to politics, insisting she was now fine. 'Clearly, I was upset yesterday and everyone could see that. It was a personal issue and I'm not going to go into the details of that,' she said. 'My job as chancellor at 12 o'clock on a Wednesday is to be at PMQs next to the prime minister, supporting the government and that's what I tried to do. 'I guess the thing that maybe is a bit different between my job and many of your viewers' is that when I'm having a tough day it's on the telly and most people don't have to deal with that.' She rejected suggestions that her upset was connected to an interaction with Lindsay Hoyle, the Commons speaker, or with a government colleague. 'People saw I was upset, but that was yesterday. Today's a new day and I'm just cracking on with the job,' she added. During a Q&A session with Starmer after his speech at the NHS event, a number of reporters directed questions to Reeves – but without reply. Starmer also refused to discuss what prompted Reeves's upset: 'She has made clear on a number of occasions that yesterday was a personal issue, and I am certainly not going to say anything more about that. I think it's fantastic that she is here, and none of this would be happening if she hadn't taken the decisions that she's taken.' Asked if he should have noticed what was happening during PMQs and consoled the chancellor, Starmer said that was unrealistic given the format of the Commons exchanges. 'I didn't appreciate what was happening because, as you'll probably appreciate, PMQs is pretty wired,' he said. 'It goes from question to question and I am literally up, down, question, looking at who is asking me a question, thinking about my response and getting up and answering it.' He added: 'It wasn't just yesterday. No prime minister ever has had side conversations in PMQs. It does happen in other debates when there is a bit more time, but in PMQs it is bang, bang, bang, bang. 'That is what it was yesterday and therefore I was probably the last to appreciate anything else going on in the chamber.' Reeves has been under intense pressure, with her task of balancing already tight public finances made even harder after the government's concessions to Labour MPs over plans to reform welfare, which has obliterated the planned-for £5bn savings a year. Downing Street has insisted that Reeves's position is not under any threat. Speculation that she might resign or be forced out had pushed up borrowing costs and led the pound to fall against the dollar and euro, with markets rallying after Starmer publicly backed her.
The Herald Scotland
31 minutes ago
- The Herald Scotland
Starmer vows to press on with welfare reform as he takes blame for U-turn
But he added his Government would 'come through it stronger' as he vowed to 'reflect' on what needed to be done 'to ensure we don't get into a situation like that again'. Despite the setback, which saw changes to the personal independence payment (Pip) stripped out of his welfare legislation, Sir Keir said on Thursday his Government was 'pressing on with welfare reform'. Answering questions at the launch of Labour's NHS plan, he said: 'It is important we reform the system. Welfare isn't working.' The Prime Minister went on to praise disabilities minister Sir Stephen Timms, who is now leading a review of Pip, saying he was 'a thoroughly decent man of huge integrity that we can have faith in to do the review and make the changes that are necessary'. Sir Keir's U-turn saw planned changes to Pip eligibility put off until after Sir Stephen has completed his review of the benefit next autumn, leaving only changes to universal credit to go forward. That decision has caused a fiscal headache for Chancellor Rachel Reeves, with the £4.8 billion of savings the reforms were expected to deliver now unlikely to materialise. Economists have warned that this is likely to mean further tax rises in the autumn, and the Prime Minister did not rule out the possibility on Thursday. Ms Reeves has previously promised she would not need to repeat the £40 billion tax raid she set out in October 2024. Asked if he would repeat that commitment, Sir Keir said: 'No prime minister or chancellor is going to write a budget in advance, but we did really tough stuff in that budget last year.' Sir Keir Starmer has given his full backing to Rachel Reeves, who was seen crying in the Commons chamber on Wednesday (Jack Hill/The Times/PA) But he added that last year's budget had already done much of the 'heavy lifting' on repairing the public finances. The Chancellor also declined to 'speculate' about tax rises ahead of the budget, but told broadcasters there was 'a cost to the welfare changes that Parliament voted through this week and that will be reflected in the budget'. Ms Reeves herself appeared alongside Sir Keir and Health Secretary Wes Streeting at the launch of the NHS plan on Thursday, a day after she had appeared visibly tearful in the Commons during Prime Minister's Questions. The Chancellor told broadcasters it had been related to a 'personal issue', while Sir Keir gave her his full backing, adding: 'I think it's just fantastic she's here and, as I say, none of this would be happening if she hadn't taken the decisions that she's taken.' Questions about the Chancellor's future had sparked a sharp fall in the value of UK government bonds on Wednesday, but the markets rallied on Thursday morning following repeated reassurances she was safe in Number 11. But Conservative shadow chancellor Sir Mel Stride said the scenes in the Commons over the past week had left bond markets 'twitchy' about the Government and 'their ability to actually grip things like spending going forward'.
The Herald Scotland
31 minutes ago
- The Herald Scotland
Rachel Reeves insists she is ‘cracking on with the job' after Commons upset
Ms Reeves would not, however, be drawn into answering questions about the 'personal matter' which had upset her ahead of Wednesday's Prime Minister's Questions. She told broadcasters: 'Clearly I was upset yesterday and everyone could see that. It was a personal issue and I'm not going to go into the details of that. 'My job as Chancellor at 12 o'clock on a Wednesday is to be at PMQs next to the Prime Minister, supporting the Government and that's what I tried to do. 'I guess the thing that maybe is a bit different between my job and many of your viewers' is that when I'm having a tough day it's on the telly and most people don't have to deal with that.' Chancellor Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks during Prime Minister's Questions in the House of Commons (House of Commons/UK Parliament/PA) The Chancellor rejected suggestions that her tears were related to a conversation with Commons Speaker Sir Lindsay Hoyle or another member of Government. 'People saw I was upset, but that was yesterday. Today's a new day and I'm just cracking on with the job,' she added. Sir Keir gave a full-throated defence of his Chancellor, and said he had not appreciated how upset she was while he was focused on the cut and thrust of Parliament's most-viewed weekly event. On Thursday, the Chancellor appeared alongside the Prime Minister and Health Secretary Wes Streeting as the Government launched it's 10-year plan for the NHS in London. Ms Reeves made no mention of Wednesday's incident in the Commons as she made her first public appearance since crying in the chamber. Smiling as she spoke at a health centre in London, the Chancellor insisted the NHS plan was 'good for the health of our nation and good for the health of our nation's finances'. She also stopped to take selfies with nurses and other healthcare staff who were gathered for the launch. Sir Keir and Ms Reeves embraced as he made his way to the podium to give a speech after the Chancellor had finished. The Prime Minister poured praise upon her in an open show of unity, hailing the decisions made by the Chancellor as playing a part in the Government investing 'record amounts in the NHS'. Sir Keir said he did not 'appreciate' that Ms Reeves was crying behind him at PMQs as the event is 'pretty wired'. 'It goes from question to question and I am literally up, down, question, looking at who is asking me a question, thinking about my response and getting up and answering it,' he said. Sir Keir added: 'It wasn't just yesterday. No prime minister ever has had side conversations in PMQs. It does happen in other debates when there is a bit more time, but in PMQs it is bang, bang, bang, bang. 'That is what it was yesterday and therefore I was probably the last to appreciate anything else going on in the chamber.' As the Prime Minister took questions from the media, several journalists invited Ms Reeves to comment on her tears, but only Sir Keir answered. Earlier, the Prime Minister said all people could be caught 'off guard' by their emotions, but the Chancellor had to deal with it while on camera in Parliament. He said she was doing an 'excellent' job, would remain in place beyond the next general election, and that they were both absolutely committed to the Chancellor's 'fiscal rules' to maintain discipline over the public finances. Chancellor Rachel Reeves (left), Prime Minister Sir Keir Starmer (right) and Health Secretary Wes Streeting (second left) at the launch of the Government's 10-year health plan (Jack Hill/The Times) UK Government bonds rallied and the pound steadied on Thursday, after reassurances from the Prime Minister about the Chancellor's future. The sight of her in tears on Wednesday, and the £5 billion black hole in her public spending plans as a result of the welfare U-turn had spooked the markets, triggering a sharp sell-off of bonds, with the yield seeing the sharpest increase since US President Donald Trump's tariff plans shook up financial markets in April. Back in the Commons chamber, Commons Leader Lucy Powell defended her 'friend' Ms Reeves, and said 'she's got more class than most of the rest of the members opposite on the frontbench'. Leadership is hard. There are good days, some very good, and bad days, some very bad. The resilience you need for top jobs is superhuman. But if a Chief Exec cried in public, if a military chief said they hadn't read the operational plan properly because they had a bad day,… — Claire Coutinho (@ClaireCoutinho) July 3, 2025 The Conservatives meanwhile suggested Ms Reeves' public show of emotion was not acceptable. In a post on X shared by Tory leader Kemi Badenoch, shadow energy secretary Claire Coutinho said: 'Leadership is hard. There are good days, some very good, and bad days, some very bad. The resilience you need for top jobs is superhuman. 'But if a chief exec cried in public, if a military chief said they hadn't read the operational plan properly because they had a bad day, they would not be forgiven for it.'
