UK PM Starmer Confirms Rachel Reeves to Stay as Chancellor

UK Prime Minister Sir Keir Starmer has firmly backed Chancellor Rachel Reeves to remain in her role for many years, following a visibly emotional moment she had during a Commons session. Starmer emphasized that Reeves's emotional response was due to a personal matter, unrelated to politics or the recent welfare reform U-turn that has impacted budget plans. The Prime Minister admitted the government mishandled the rollout of welfare reforms and took responsibility for the process, but insisted that the government will come through stronger. Starmer and Reeves are described as working in 'lockstep,' with Starmer praising her excellent performance as chancellor and their joint efforts to deliver record inward investment. Market reactions to the uncertainty about Reeves’s position initially caused a sharp selloff in UK gilts, stocks, and the pound, but Starmer’s public support helped the markets rebound. Investors were reassured by the commitment to fiscal discipline, with bond yields falling and the FTSE 250 recovering after Starmer's intervention.