Reeves faces grilling by MPs over market chaos amid speculation about her future
Reeves faces grilling by MPs over market chaos amid speculation about her future
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Rachel Reeves is set to calm jittery financial markets amid soaring Government borrowing costs as she prepares for a tough session with MPs today. The Chancellor is due to face the Commons for the first time since her trip to China, which was slammed by critics as it coincided with a tumultuous week for the pound and surging UK bond yields.
Speculation over her future intensified on Monday after Sir Keir Starmer expressed his confidence in her but stopped short of guaranteeing her position at Number 11 until the next general election during a press briefing in east London. However, Downing Street later confirmed that Ms Reeves would stay in her post "for the whole of this Parliament".
Returning from China on Monday amid fears that the Government might breach its own fiscal rules, the Tories lambasted her for having "fled" during the market chaos, while the Lib Dems urged her to stay put and reveal a "plan B" to tackle the economic uncertainty.
Nonetheless, Ms Reeves highlighted that deals made in Beijing, where she engaged in trade and investment talks, are expected to bring in £600m for the UK over five years. Sir Keir led a Cabinet meeting at Downing Street on Tuesday morning before the Chancellor's scheduled statement and subsequent grilling in the Commons, which will likely centre on the UK's bleak economic forecast.
On Tuesday morning, a social media post from the Chancellor emphasised the importance of "engaging pragmatically with international partners" in the Government's push for economic growth. "I will be updating Parliament on this engagement later today," she announced.
