Sir Keir Starmer says he has “full confidence” in his team after facing questions over the future of his chancellor, Rachel Reeves.
Turmoil in the bond market has sent public sector borrowing costs up to a 30-year high, suggesting that tax rises or spending cuts may be in the offing.
While similar trends have been observed globally ahead of Donald Trump’s inauguration, some have suggested that the chancellor’s economic policies such as National Insurance hikes could have spooked investors.
Answering questions following a speech in London, the prime minister has backed Reeves and said changes to planning rules, the industrial strategy and embracing artificial intelligence would fuel growth.
“That is why I’m confident in our mission for growth and I’m confident, completely confident in my team.”
However, he declined to say whether Reeves would remain Chancellor for the duration of the parliament.
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