Starmer says Reeves doing ‘fantastic’ job - but avoids saying if she will be in post at next election
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The prime minister told an audience in east London that he is ‘completely confident’ in his team as pressure grows over the economy. Sir Keir Starmer has said Rachel Reeves has his full confidence and is doing a fantastic job, but dodged questioning over whether his chancellor will still be in post at the next election.
![[Rachel Reeves is doing a ‘fantastic job’, Sir Keir Starmer said but he refused to say she would remain in post until the election (Peter Byrne/PA)]](https://static.independent.co.uk/2025/01/13/13/4f9c42f2cebef64d0c89687cda73552cY29udGVudHNlYXJjaGFwaSwxNzM2ODU4Nzc4-2.78473236.jpg)
The prime minister’s remarks came amid mounting pressure on Ms Reeves as the value of the pound fell and government borrowing costs remained high. While he defended the chancellor’s handling of the economy, he declined to guarantee she would remain in No 11 for the duration of the parliament.
The pound fell to a fresh 14-month low on Monday, slumping another 0.6 per cent to 1.21 US dollars after last week hitting its lowest level against the dollar since November 2023. UK government bonds – also known as gilts – continued to see 10-year yields hit fresh highs not seen since 2008, at 4.9 per cent.
Answering questions following a speech on the government’s plan for artificial intelligence in London the prime minister stressed that the Treasury will meet its fiscal rules – including requiring day-to-day spending to be met from revenues rather than further borrowing.
But rising borrowing costs eat into the funding available, which could force Ms Reeves to act to either reduce spending or raise taxes to comply with her rules when the Budget watchdog gives its updated forecast in March. Asked to give a yes or no answer on whether or not the chancellor will still be in post at the next election, Sir Keir said the UK will “stick to the fiscal rules”, adding: “I’m confident in our mission for growth, and I’m confident, completely confident, in my team.
