The Tory leader Kemi Badenoch has said Rachel Reeves is clinging on to her job “by her fingernails” as the economy is “flatlining” and the Prime Minister has “refused to back his Chancellor staying in her job.”
Badenoch said that the Chancellor has “crashed” business confidence despite Labour promising “stability.”
The Shadow Business Secretary Andrew Griffith has warned on Monday that Reeves is “so out of her depth” that she needs “a decompression chamber.”
Badenoch said, “The Prime Minister just refused to back his Chancellor staying in her job. Keir Starmer and Rachel Reeves have driven Britain’s economy into the ground.
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“The markets are in turmoil and business confidence has crashed, yet the Chancellor is nowhere to be seen. Labour promised stability and instead the City Minister is mired in corruption investigations and the Chancellor is hanging on by her fingernails.”
Traders are preparing for “the pound to slump” by as much as 8% as it remains under pressure amid government borrowing, Bloomberg reported.
Bloomberg said, “There’s sizable demand for contracts that pay out below $1.20 — around 1% lower than where the currency was trading on Monday — according to data from the Depository Trust & Clearing Corporation.
“Some traders are even betting on sterling falling below $1.12, the weakest level in more than two years.”
The Shadow Business Secretary warned that Reeves was “so out of her depth, she needs a decompression chamber”.
He told GB News, “What we’ve got here is a relaunch of what we were already doing in Government. All we’ve done is lose six months.
“The new Chancellor came in and cancelled £1.3 billion for AI and supercomputing. Now, I’m glad some of that money’s gone back in today, but we’ve just lost six months in that global race.”
Shadow Financial Secretary Gareth Davies warned: “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.”
