Reeves under pressure as economy remains sluggish
After a year in office, Britain’s Chancellor of the Exchequer Rachel Reeves faces a reckoning over unmet promises of economic stability, with a stop-start economy and restive bond markets pointing to another tax-raising budget that she had hoped to avoid.
Wednesday saw the biggest collapse in British government bond prices since the ill-fated 2022 economic agenda of former prime minister Liz Truss, sparked by investor fright at a tearful appearance by Reeves in parliament.
A major rebellion in Prime Minister Keir Starmer’s Labour Party against welfare reforms - which forced him to gut key parts of the plan - also fed doubts about its ability to cut spending and raised questions about party control.
Reuters
