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January 14, 2025
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Failing British Prime Minister Starmer Refuses to Guarantee That Rachel Reeves Will Remain Chancellor Amid Bond Yields Rising, High Inflation and a Sinking Sterling Pound


British Chancellor Rachel Reeves and Prime Minister Keir Starmer.

British Prime Minister Keir Starmer is failing in many different aspects of governing, but right now, the economic woes are becoming so severe that they are becoming more concerning than the social turmoil or even the damaging investigations of corruption against Tulip Siddiq, the UKโ€™s Minister of State for Economic Crime and Corporate Transparency, accused, along with her family, of taking bribes of up to ยฃ4 billion related to a Russia-funded nuclear power plant deal in Bangladesh.

The UK is facing economic turmoil, with bond yields up at a 25-year high, which increases government borrowing costs, and domestic inflation at 2.6%, above the Bank of Englandโ€™s target.

Add to that the weakness of the sterling pound, and the import costs and inflation fears are rising โ€“ potentially leading to higher interest rates.

High debt servicing costs might force a โ€˜Sophieโ€™s choiceโ€™ between tax increases or spending cuts, slowing economic growth. While all that is happening, the Chancellor (Finance Minister) Rachel Reeves sees her future thrown into doubt by the Prime Minister.

Yesterday (13), Starmer twice refused to guarantee that Reeves would remain Chancellor at the next election.

The British economy is in a tailspin under Starmer.

The Telegraph reported:

โ€œHis spokesman was later forced to insist that the Chancellor would be kept in post, but the Prime Ministerโ€™s comments prompted one Labour MP to privately call for her to be sacked if the situation does not improve. There is speculation that Ms. Reeves could be replaced by Pat McFadden, the Chancellor of the Duchy of Lancaster who is often described as the de facto deputy prime minister, or Wes Streeting, the Health Secretary.โ€

Starmer also appointed Olaf Henricson-Bell as director of policy in a blow to Reevesโ€™ authority.

โ€œThe Conservatives accused Sir Keir of using the Chancellor as a โ€˜scapegoatโ€™ for the dire state of the economy, while Reform UK said she was merely implementing โ€˜his economic agendaโ€™.โ€

Conservative MP Gareth Davies, shadow financial secretary, on X:

Richard Tice, deputy leader of Reform UK, on X:

Reeves is under growing pressure over the sad state of the economyโ€™s public finances, with oil prices at a six-month high and the pound at a new 14-month low.

โ€œThe refusal to offer a guarantee set hares running in Westminster, because Downing Street had shown its support for David Lammy, the Foreign Secretary, when facing similar questions last year.โ€

Starmer refused to say โ€˜yes or noโ€™ to whether Ms Reeves would still be Chancellor at the next general election.

โ€œHe merely said: โ€˜That is why I am confident in our mission for growth and I am confident, completely confident, in my team. We never pretended, nor would anybody sensibly argue, that after 14 years of failure you can turn around our economy and our public services before Christmasโ€™.โ€

Will the โ€˜Incredible Shrinking Premierโ€™ sack his Financial Minister?

One Labour MP told the Telegraph โ€˜off the recordโ€™ that Starmer should sack the Chancellor if she has not stabilized the economy by the summer.

โ€œThe backbencher said that โ€˜questions are going to start to be askedโ€™ about the Chancellorโ€™s future if she does not demonstrate that she has the โ€˜capabilities to take our country forwardโ€™ in the coming months. They added: โ€˜If by June we do not see the kind of economic decisions being made which are believed to be able to drive our country forward, stabilize our economy and to protect our public servicesโ€ฆ then I think people will want greater scrutiny over whether or not she has got the capability to be able to secure our economy for the longer termโ€™.โ€

The Prime Ministerโ€™s official spokesman was forced to insist that Reeves would still be Chancellor at the next general election โ€“ which is, frankly, unlikely.

Read more:

Musk Says British Prime Minister Starmer โ€˜Starmtrooperโ€™ Is Blocking Grooming Gangs Inquiry Because He Is โ€˜Hiding Terrible Thingsโ€™

The post Failing British Prime Minister Starmer Refuses to Guarantee That Rachel Reeves Will Remain Chancellor Amid Bond Yields Rising, High Inflation and a Sinking Sterling Pound appeared first on The Gateway Pundit.

Source: The Gateway Pundit
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