Prime Minister Sir Keir Starmer has publicly confirmed his commitment to keeping Chancellor Rachel Reeves in her position until the end of the current parliament, despite new polls showing Nigel Farage’s Reform UK almost neck and neck with Labor and pushing the Conservatives into third place.
Reeves, who cut short a trip to China to face mounting domestic criticism, has been accused of failing to stem rising government borrowing costs and a sharp fall in the pound. Labor MPs privately fear that his October budget – with massive tax increases and public spending increases – will hamper economic growth and could jeopardize the Government’s fiscal goals.
Starmer initially gave only guarded assurances of his “full confidence” in Reeves. However, amid speculation about his future, Downing Street has confirmed he will remain chancellor until 2029. “You will work with him in the position of chancellor throughout this parliament,” said No 10’s spokesperson.
The pledge of allegiance came as a YouGov poll showed Labour’s share of the vote had fallen to 26 per cent, a significant drop from the 34 per cent the party achieved in July. Reform UK, buoyed by new support, has risen to 25 per cent – one point behind Labor – while the Tories limp into third place on 22 per cent. The Liberal Democrats and Greens are polling at 14 percent and 8 percent respectively.
Anthony Wells, head of European Political and Social Research at YouGov, described “the speed and extent of Labour’s fall since July” as remarkable, with voters turning away from the Lib Dems, Greens, Reform and the undecided camp. He warned that the election may not have been for Labor or the Tories, as research suggests a three-way race will be strengthened in the coming months.
Rising mortgage interest rates have ended the chancellor’s £10 billion funding scheme aimed at balancing the books. If borrowing costs remain high, Reeves may be forced to announce further austerity in March — a move Prime Minister Starmer described as “unsympathetic,” similar to the coalition government’s austerity program since 2010. with figures like Diane Abbott warning of “austerity mark two.”
Reeves is also under pressure from employers who fear the upcoming workers’ rights program could stifle hiring and lead to early layoffs. The Confederation of British Industry (CBI) has urged the government to delay the proposed changes, which would increase unfair dismissal rights from day one and increase sick pay. Rupert Soames, president of the CBI, called it a “bad rush,” warning that businesses could act before laying off workers before the new law comes into force.
Despite these challenges, Starmer insists that the government will continue with its economic agenda to bring stability. Whether that unwavering determination can improve Labor’s electoral success remains uncertain, as the Revolution continues to show strength and business leaders seek clarity on both fiscal and regulatory policy.
