Political reporter
Political reporter
Sir Keir Starmer has sought to calm the markets and end speculation about Rachel Reeves’ future after the chancellor was seen crying in the House of Commons.
The pound plummeted and government borrowing costs rose after the incident at prime minister’s questions on Wednesday, when Sir Keir failed to guarantee that Reeves would keep her job.
He later insisted that he and Reeves were in “lockstep”, telling the BBC that “she will be chancellor for a very long time to come”.
UK borrowing costs have fallen this morning, suggesting the message is getting through, but questions remain about the cause of Reeves’ tears, with no further details being given about the personal matter said to be behind it.
Meanwhile, Sir Keir used an interview with the BBC’s Nick Robinson to admit he “did not engage” properly with Labour MPs before a series of damaging U-turns on his flagship welfare reforms.
Sir Keir told Robinson’s Political Thinking podcast the chancellor’s tears had had “nothing to do with politics” or this week’s welfare U-turns – which potentially blows a hole in her Budget plans.
“That’s absolutely wrong,” said Sir Keir. “Nothing to do with what’s happened this week. It was a personal matter for her, I’m not going to intrude on her privacy by talking to you.”
On Tuesday, the government avoided defeat on its proposals to overhaul disability benefits by offering late concessions to Labour MPs threatening to rebel.
The prime minister said he took responsibility for the episode, admitting it had been a “tough” few days but insisting the government would “come through this stronger” after a period of reflection.
He said he “did not get that process right” and “did not engage in the way we should have done”.
Speaking to BBC Breakfast on Thursday, shadow chancellor Mel Stride said he “felt for” Reeves, and the incident showed politicians “are all human beings”.
But he accused the government of making “serious mistakes” and “bungling and chaos”, which he predicted would lead to tax rises in the autumn.
Health Secretary Wes Streeting gave the chancellor his full support saying she “will bounce back” and “is here to stay”.
The prime minister was said to be completely unaware Reeves was crying beside him at PMQs on Wednesday, and was said to be puzzled when an aide raised her visible upset with him after the Commons session.
The chancellor’s sister, the MP Ellie Reeves, accompanied the chancellor and held her hand as she left the chamber.
Reeves’ tears were noticed by Conservative MPs sitting opposite – one member of the frontbench described it as “horrible to watch”.
Many colleagues and allies of Reeves in Parliament are blaming an altercation with the Commons Speaker Sir Lindsay Hoyle for upsetting her.
Several have accused him of having been abrupt with the chancellor in a meeting before PMQs.
It is thought to have been about an interaction they had during Treasury questions on Tuesday in which Sir Lindsay asked her to give shorter answers.
The chancellor’s team have declined to comment, as has the Speaker’s office.
The prime minister’s comments come after a chaotic few days in Westminster, which saw Labour MPs revolt over proposed changes to the personal independence payment (Pip).
The government had initially planned to tighten eligibility criteria, but faced mounting opposition from within its own ranks.
Despite holding a commanding majority, Sir Keir’s administration appeared caught off guard by the scale of the backlash.
More than 120 Labour MPs threatened to vote against the bill, prompting a series of last-minute concessions.
Ahead of Tuesday’s vote, ministers had already watered down their plans once by reversing some cuts to universal credit and protecting current Pip claimants from stricter eligibility rules.
However some Labour MPs were still concerned the new criteria for claiming Pip would come into force before the recommendations of a review could be implemented.
Fearing a humiliating defeat, the government announced a further U-turn, saying it would not change Pip rules until it had time to consider the review’s conclusions.
The 11th hour changes leave the government’s Universal Credit and Personal Independence Payment Bill gutted of its most significant measures.
Speaking to Nick Robinson in a pre-planned interview to mark a year in office, Sir Keir admitted he “didn’t get that process right”.
“We didn’t engage in the way we should have done.”
He said that “Labour politicians come into public life because they care deeply”, especially about issues like disability benefits.
Sir Keir insisted he remained committed to reforming the welfare system.
“There is a very, very strong agreement in the Labour Party that we do need to reform the system,” he said.
“But I’m not one of these ideological thinkers. I’m a pragmatist.”
Despite the turmoil, Sir Keir said he “would not swap a single day of the last year” for life on the opposition benches.
“I came into politics to change lives, after nine long years in opposition,” he said.
Sir Keir said he was “really proud of what we’ve achieved because we have changed the lives of people”.
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