Starmer DODGES question on Rachel Reeves' future as Chancellor as UK borrowing costs soar AGAIN

“Is the three-year wait for the benefits of AI too long to help the economy now? The pound is down, the economy is flatlining”, Chopper probed.

“You know this already. What’s your plan? Will you cut the benefits bill? And will Rachel Reeves be your Chancellor at the next general election?”

Starmer responded: “We’re going to stick to the fiscal rules. That is a very important thing that we’ve said throughout.

“We set out those fiscal rules very early on in the day because we knew that the missing ingredient in recent years has been economic stability.

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“We’re determined to bring about that economic stability. That’s why the fiscal rules are absolutely central to what we do. The changes we’re bringing about, whether it’s industrial strategy, planning, energy, all of those are designed to ensure that we get the growth that we need.

“That’s why I’m confident in our mission for growth. I’m 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 Christmas.

“Before the election, I said it’s not going to be possible to do this in six months. It’s going to take time. The question is, are you creating the conditions? Do you have the determination and are you pulling the right levers for growth?

“We are doing all of those underpinned by our fiscal rules.”

Pressure continues to mount on Rachel Reeves after the pound fell to its lowest level against the dollar since November 2023, hitting $1.21 on Monday morning, as Chancellor Rachel Reeves faces mounting pressure over rising government borrowing costs.

The rate at which the government can borrow money has surged to its highest level since 2008, intensifying concerns over the Treasury's fiscal position.

The turbulence in the gilt markets has sparked fresh worries about the Chancellor's ability to meet her debt and spending targets.

While borrowing costs are rising globally, some experts suggest the UK's position has been made particularly vulnerable by recent policy decisions.

Government borrowing costs have reached concerning levels, with the yield on 10-year gilts climbing to 4.89 per cent, marking its highest point in nearly two decades.

The 30-year gilt yield has risen even further to 5.5 per cent, reaching levels not seen in 27 years.

The impact extends beyond British shores, with Germany, France, Spain and Italy all experiencing rising government debt costs as markets opened on Monday morning.

Emma Wall, head of platform investors at Hargreaves Lansdown, suggested the UK's challenges weren't solely due to global factors, pointing to Budget measures that may have contributed to inflationary pressures.

In response to the market turbulence, Rachel Reeves has pledged to "take action" to meet her fiscal rules.

Gareth Davies MP, Shadow Financial Secretary, said: “Labour are trying to insist that everything is fine, but the fact that Keir Starmer has repeatedly refused to say whether Rachel Reeves will remain as Chancellor speaks volumes.

“The Prime Minister is looking for a scapegoat but this crisis was made in Downing Street by Rachel Reeves.

“The markets and businesses are watching, Labour promised stability and confidence but they have lost control. They must take action to reverse before this gets worse for families.”